Netflix to roll out new feature to curb password sharing among friends, family
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New Delhi: The online streaming platform Netflix will introduce the system of asking for a verification code every time one logs in to put a curb on users sharing passwords and login credentials outside their home or family. GammaWire reported that the OTT giant, which has more than 200 million paid subscribers globally conducted a test with selected users to check password sharing.
The users received a pop-up notification asking them to verify whether they were the account holders by asking them to enter the verification code sent to the original account holder's mobile and email. Many of the users subjected to the test simply gave "verify later", but the pop warning kept coming up.
This may not curb all the password sharing since the account holder would share the verification code too. But it may reduce the number of sharing. A Netflix spokesperson told "The Verge" that through the test, Netflix is making sure that the particular user is authorised to use that account.
The platform is forced to take such measures to give closer attention to user growth as competition in the streaming market is getting tougher. In order to gain fresh users, password sharing should be on the check.
The Covid-19 induced lockdown in 2020 helped Netflix cross 200 million paid users as viewership multiplied during the pandemic restrictions. The platform witnessed 23 per cent growth over the year in the fourth quarter of 2020.
"Since the start of 2018, our paid memberships have risen from 111m to 204 million, and our average revenue per membership has grown from $9.88 to $11.02, despite significant F/X (foreign exchange) headwinds," Netflix said, according to IANS news report. "This approach has allowed us to organically increase revenue by $4-$5 billion annually over the past several years," Netflix added.
According to Netflix's earnings report, it added 37 million paid memberships, setting a record, and achieved 25 billion dollars in annual revenue with over 24 per cent year over year. It grew operating profit by 76 per cent reaching 4.6 billion dollars.
