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Netflix Password Crackdown May Boost Risk of User Turnover

  • Analysts say move may boost revenue but dampen pricing power
  • Shares have underperformed the Nasdaq 100 for several months

   

Photographer: Daniel Acker/Bloomberg

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Netflix Inc. may find out soon just how many of its viewers will agree to pay to use its services.

The video-streaming giant is taking a firmer stance against people sharing account passwords, testing a feature that prompts non-paying viewers to buy a subscription. A company spokesperson wrote that the test was “designed to help ensure that people using Netflix accounts are authorized to do so.”