Netflix is testing a new feature on password sharing

The streaming giant, Netflix, is testing a new feature that could help prevent people from sharing their passwords with people outside their household.

This test is designed to help ensure that people using Netflix accounts are authorized to do so, a Netflix spokesperson said in a statement that, “the company’s terms of service say accounts may not be shared with individuals beyond your household”.

Some users have already started receiving the pop-up message asking them to verify the account by confirming with a text or email sent to the account holder. Users can also choose to verify later, in which case, the pop-up will show up again at an undetermined later time. If they can’t confirm they’re an authorized user, viewers will be prompted to set up a new account.

The new feature is just a test, and it’s rolling out to a limited number of users who watch on the Netflix TV app.

About 33% of all Netflix users share their password with at least one person.

Until now, Netflix has not done anything to police these terms. Netflix’s Basic plan costs $8.99 and allows streaming on a single device, while the Standard plan costs $13.99 and allows streaming on up to 2 devices, and the Premium plan costs $17.99 and allows on up to 4 devices. However, they don’t limit users on the number of devices a single account can be logged into.

In January this year, Netflix’s share price bounced about 17% higher after it beat market expectation, powering the video streaming stock to close high after adding more customers than expected and revealed it no longer needs debt in building its entertainment empire.

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