Published: Sun, November 10, 2019
Markets | By Otis Pena

Streaming services set to crack down on password sharing

Streaming services set to crack down on password sharing

The measures to curb the practice could possibly include making customers change their passwords "periodically" and texting codes to subscriber's phones so they can continue watching.

Interestingly the survey also found that even after the launch of Apple TV+ and Disney+, planned for early 2020, .as many as three-fifths of United Kingdom consumers said they plan to keep their existing video streaming subscriptions to the likes of Netflix, Sky's NOW TV and Amazon Prime Video. Phones or tablets might be OK, but a Roku device at a second location would not.

In a recent development, streaming giants, such as Netflix Inc., HBO, and market leaders in the cable industry are planning to limit password sharing.

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The trade group will be called Alliance for Creativity and Entertainment (ACE).

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The pay-TV industry is projected to lose $6.6 billion in revenue from password sharing and piracy this year, according to Parks Associates. Is your Netflix password really yours, or are you still "sharing" your parent's account, or maybe your old roommates?

While industry executives widely agree password sharing is a problem, there is no consensus on where to draw the line.

Online TV services also vary in how generous they are about password sharing. Specifically, a quarter of all United Kingdom consumers plan to subscribe to Disney - much more likely with Millennials - while just 16% said they plan to subscribe to Apple TV+. Programmers and distributors blame each other for being too lenient in how many people can simultaneously stream from one account.

Subscribers in the US, Canada and the Netherlands, however, will gain earlier access to the platform when it launches on Tuesday (November 12). "We'll continue to look at the situation and we'll see those consumer-friendly ways to push on the edge of that but we've got no big plans at this point in time in terms of doing something different there".

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