Netflix is reportedly piloting a new test run with some users to crackdown on password sharing of one-third of more than 200M subscribers around the world who are involved in this practice. Upon login, if Netflix detects that a user is not the account owner, they will need to confirm a verification code. If they are unable to do so, Netflix will prompt them to start a new account instead.

"This test is designed to help ensure that people using Netflix accounts are authorized to do so," said a Netflix spokesperson.

Netflix users are already receiving a message asking them to confirm they live with the account owner by entering details from a text message or email sent to the owner. Viewers can delay the verification and keep on watching Netflix. The message may reappear when they open Netflix again, and eventually they could be required to open a new account to continue streaming.

Acting on the Netflix terms of service, this new test simply wants to verify if the viewer and owner of an account are from the same household.

Interestingly, the concept of password sharing has been on Netflix CEO Reed Hastings' mind for a number of years, but heretofore, he has adopted a somewhat blasé attitude about it publicly. "Password sharing is something you have to learn to live with," Hastings said in 2016.

"There’s so much legitimate password sharing, like you sharing with your spouse, with your kids, so there’s no bright line, and we’re doing fine as is."

In the Philippines, where there's a close-knit family ties and Filipinos known for their generosity, password sharing of Netflix account is influenced by the strong relationship that the owner of the account and the person shared with the password have.

If this password sharing is between close friends and members of the family, this latest development assures no harm done and everybody can continue to watch their favorite Netflix flicks. Otherwise, this crackdown is merely trying to foil 'illegal' practice between strangers.