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State of the Screens

Netflix, HBO and Cable Giants Are Coming for Password Cheats

By November 13, 2019No Comments

Password123: A coalition of media companies, including HBO and Netflix, are working on a plan to limit password sharing.

Password sharing by platform according to MoffettNathanson:
Netflix – 14%
Hulu – 11%
Amazon – 6%

Flashback: Cable TV’s Password-Sharing Crackdown Is Coming

Spectrum username had 30K simultaneous streams!

ESPN asked a group of 50 millennial sports fans if they shared passwords.  All 50 raised their hands!

# of simultaneous users that each service allows:
1) Netflix – 4
2) HBO – 3
3) DirecTV (Satelite) – 5

Ideas for reducing password sharing:
1) Limit concurrent streams
2) Force more frequent logins

Projected revenue loss due to password sharing (% change) according to Parks Associates:
1) 2017 – $3.5B
2) 2021 – $9.9B (↑ 183%)

Alternative take: Matthew Ball provides a smart use case for why password sharing may be driving higher revenue.

More #1: Love Is Fleeting, But Netflix Passwords Are Forever

More #2: Sharing your TV streaming passwords? Cable companies won’t stop you—yet

More #3: Disney fights streaming account sharing with help from cable industry

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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