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Netflix knows you've been giving your password away

Reed Hastings, Founder and CEO of Netflix, participates in a panel discussion about entertainment in the digital age at the Motion Picture Association of America's conference "The Business of Show Business" in Washington on February 6, 2007. (UPI Photo/Alexis C. Glenn)
Reed Hastings, Founder and CEO of Netflix, participates in a panel discussion about entertainment in the digital age at the Motion Picture Association of America's conference "The Business of Show Business" in Washington on February 6, 2007. (UPI Photo/Alexis C. Glenn) | License Photo

An estimated 10 million people use Netflix for free using someone else's password, according to a report from AV Club.

We all knew they would catch on. Some viewing history just doesn't go together -- Suspenseful Dramas from the 1980s and Heartfelt Fight-The-System Documentaries? "Say Yes to the Dress" and "Mega Shark vs. Crocosaurus"?

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Netflix encourages password-sharers to use the site's new $11.99-per-month family plan, which allows four separate users. Officially, the family plan is meant for larger households that run into the standard plan's limit on two streaming devices. But AV Club says "it's mostly targeted at the millions of people -- roommates, coworkers, friends... who still think it's "cool" to share, then pay the price of being booted off the system" when more than two of their password borrowers try to stream at once.

But Netflix doesn't appear to be rushing users into the family plan just yet. For now, the company is riding the wave of huge subscriber numbers -- it has even surpassed HBO in the United States -- and the success of its original content.

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