Streaming services like Netflix will ask you to stop circumventing your password

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Streaming services like Disney +, Netflix, Amazon and others will ask you to stop sharing your password. According to the Associated Press (AP), streaming music, videos, and other services are losing billions of dollars a year in revenue to those who share their passwords with others. The AP notes that this may not seem like a huge amount to an industry that reports about $ 120 billion in profits annually, but the cost of developing new programming is expensive.

Streaming services want you to stop sharing your password with others

Consider that Amazon will spend $ 450 million on the first season of the “Lord of the Rings” series, which is four times the amount HBO paid for the “Throne Game” season. Tuna Amobi, an analyst at research firm CFRA, says: “Frankly, the industry has been striving for it. The question is when, not if. The landscape seems to be quite set for these new entrants, so it seems . “

Direct suppliers need to find the perfect balance. Of course, some offer service levels that encourage (or at least do not encourage) password sharing. Tightening password sharing may help some streaming companies generate extra revenue when password sharers decide to purchase their own subscription. On the other hand, getting too hard can shut down some users.

A few months ago, Netflix sent pop-ups asking users to verify their account by tapping a code sent via email or text. But Netflix let those who confirmed their accounts do so later. CFRA’s Amobi said of Netflix: “They are very cautious about it. If handled incorrectly, there is always a downside to this kind of movement.”

Netflix may not have been so concerned about subscribers sharing their password in the past. But now the world’s largest video streaming service is in competition with Disney +, which has half of the global subscribers that Netflix has amassed, but in just two years. Netflix CEO Reed Hastings said during a conference call last month: “We will never open something that feels like ‘turning the screws,'” Hastings said in a call with analysts in April. ” It must be felt that it makes sense for consumers to understand. “

Amobi points out that “programming costs will double or in some cases triple and quadruple, so you’ll have to fund them somewhere. Most services will look at losses in the next few years before they’re equal. So they can use all their orders can get.”

Josh Galassi, 30, from Seattle and works in public relations, says everyone he knows shares passwords just like him. “One of my rules is that I only share passwords with close friends or family,” Galassi said. “Or someone I know who has a service I don’t want to pay for, I ask them if they’re willing to share in return for what I paid.”

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