Netflix to Block Account Sharing with Friends... Testing Identity Verification Feature

Sending Verification Code When Suspecting Password Sharing
CNBC Interprets as "Measure to Prevent Revenue Loss"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Netflix, the world's largest video streaming (OTT) company, has announced plans to implement a policy to block the act of accessing its service by borrowing someone else's password.

According to CNBC on the 11th (local time), Netflix revealed that it is testing an identity verification feature as a measure to prevent unauthorized viewing of its content. Netflix stated, "This test is intended to ensure that people with Netflix accounts have the proper authorization to watch."

Until now, Netflix has effectively tolerated some users sharing passwords with others to watch content without paying, without taking significant action. However, through this policy change, the company plans to block such behavior at its root.

CNBC cited data from research firm Magid, stating, "About 33% of Netflix users share passwords with others," and analyzed that "Netflix is taking measures to prevent revenue loss caused by password sharing."

Netflix is testing a feature that, when password sharing is suspected, sends a code via text message or email to the account owner to verify their identity. If identity verification is not completed after this process, access will be blocked.

Meanwhile, Netflix announced earlier this year that its global subscriber count surpassed 200 million. While it still holds the number one position worldwide in terms of subscribers, Disney's OTT service 'Disney Plus (+)' has rapidly caught up by surpassing 100 million subscribers just a year and a half after its launch.

CNBC reported, "Competition within the OTT industry is intensifying with players like Disney, WarnerMedia's HBO Max, and NBCUniversal's Peacock," and added, "In this situation, it appears that the policy to prevent account sharing was implemented to protect revenue."

This content was produced with the assistance of AI translation services.