We’ve written countless stories about streaming services in recent years, but one element we’ve rarely touched on is password sharing. It’s a way for multiple users to have access to the same account, and as it turns out, it’s costing streaming services quite a lot of money.
According to research firm Parks Associates, streaming services lost an estimated $9.1 billion in 2019 due to password piracy and sharing. This trend shows no signs of stopping either, with the research firm predicted the figure to rise to $12.5 billion by 2024.
While services like Netflix, Hulu and Amazon have been cracking down on the sale of passwords, they have all taken a far less aggressive approach to the sharing of passwords.
Given how much money is being lost as a result, that could change though, especially as more streaming services come to the fore and the fight to win viewing time from consumers truly begins.
Speaking to The Hollywood Reporter (THR) regarding this Jean-Marc Racine, chief product officer at Synamedia notes that, “When the growth starts to flatten and you start to look at the balance sheet, you are going to be looking for revenue.”
He adds that a recent study conducted by Synamedia, whose clients include Disney, Comcast and AT&T, found that the company was losing an estimated $70 million a year due to password sharing.
This issue might also be a symptom of different generations, THR is discovering. This as a study by Hub Entertainment Research found that 64 percent of users aged 16 to 24 shared their passwords, compared to only 16 percent among those aged 35 years and older.
Either it looks to be an issue that streaming services will need to wrestle with moving forward, and the more these platforms start losing, the greater consideration will be given to how passwords and multiple accounts are handled.[Source – The Hollywood Reporter] [Image – Photo by CMDR Shane on Unsplash]