Netflix has announced that it will delay its plan to limit password sharing until July, giving users more time to adjust to the new policy.
The streaming giant had previously started testing a feature that would prompt some users to verify their account ownership by entering a code sent to the email or phone number of the account holder. The feature was intended to prevent unauthorized access and reduce the number of people who share a single Netflix account.
Why This Matters
The feature sparked backlash from some users who argued that it was unfair and intrusive. Some users also complained that they had trouble receiving or entering the verification code, or that they were locked out of their accounts.
Netflix said that it was listening to the feedback and decided to postpone the rollout of the feature until July, when it will launch it in select markets.
Netflix said that the password-sharing crackdown is part of its efforts to improve security and customer experience. The company also said that it wants to ensure that its users are getting the best value for their subscription, and that they are not paying for a service that they are not using. Netflix added that it will offer different plans and options for users who want to share their account with family or friends.
By The Numbers
According to a report by Parks Associates, password sharing cost streaming services $9.1 billion in lost revenue in 2019, and that figure is expected to rise to $12.5 billion by 2024.