Netflix bans password sharing to cut misuse

Netflix, which is struggling to keep its profits margin intact for the past few quarters, has finally banned the password-sharing activity among its users. Earlier, one subscriber used to pay for the premium service and used to share that single password with near and dear.

Now, the streaming behemoth has ended this menace as it is losing revenue and is fed up with the practice of sharing passwords among users.

Usually, as soon as a password is created, the server keeps a tab of the device that is being used by the user. And from then on, the password is being used by the same user. Once the location from which the password is used is locked, then the server recognizes a password login made from a different location as a suspicious login and locks down the account, and informs the user to take action.

With the menace of password sharing, Netflix is constantly witnessing account lock issues as users are sharing their passwords with people in other states and triggering location mismatch, leading to account lockouts.

To end this menace, Netflix has announced a password-sharing ban and will implement it strictly in the next few days.

Netflix is also thinking of introducing an advertising feature as a default to all its premium users to keep its revenue bells ringing.

In the past few months, the company lost about 200,000 users and might even lose another 2 million between April and June.

Elon Musk, the Chief of Tesla, recently disclosed his perspective on Netflix through one of his tweets and said that over 100 million users of the California-based company were watching the streaming service. But in reality, the company was genuinely earning revenue from just 7 million users.

This means, the rest were sharing passwords with a friend and family members and were enjoying all the content for free.

After the tweet from Musk, Netflix received a brutal reaction at the stock exchange as the company lost nearly £40 billion in revenue as the shares went south.

To block unauthorized access to the company’s services, Netflix imposed a password sharing ban on its users from this weekend.

Amazon and Disney Hotstar have already implemented the password ban rule in February this year and now Netflix has also done so.

Note- Netflix which has a global subscriber base of over 221.8 million will soon air some interesting content related to the Duke and the Duchess of Sussex and as a part of a $100m deal it is showing some exclusive content related to the participation of Meghan Markle and Prince Harry as guests at the Invictus Games


Naveen Goud
Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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