Through shared accounts, Netflix and other VOD platforms lose billions of dollars

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The problem is not only for the VOD market.

Yes, it's the topic again. No wonder it returns like a boomerang, since millions of people around the world do not see anything wrong in sharing accounts on sites such as Netflix. This contrary to the rules of virtually every service, the procedure in 2019 generated a loss of approximately 9.1 billion dollars to VOD service providers.

Interestingly, cable network providers see the problem on the VOD market, whose economic situation is much more complicated as a result of this account sharing. Why would someone pay for cable TV, if for a fraction of the price they can use VOD services contrary to the regulations and do it with impunity? Tom Rutledge from Charter Communications at a meeting in New York with representatives of "cable companies" talked about the need to take appropriate action.

"Half of the people in the country live in homes with two or fewer people. Still, VOD services allow up to five family members to subscribe to them.", said Rutledge. He suggested in this way that administrators of VOD services should not allow sharing services to such a significant number of people within the family, because it gives too much scope for abuse.

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It is suggested that companies in 2019 by piracy and sharing accounts have lost about $ 9.1 billion. In 2024, this amount is expected to exceed $ 12.5 billion, analysts at Parks Associates say. Interestingly, password sharing is more common in certain age groups. Research by Hub Entertainment Research proves that 64% of people aged 13-24 using VOD services share their password. In the age group over 35 it is only 16%. In total, 31% of all consumers using VOD admitted to sharing passwords.

Services like Disney +, Netflix, Amazon Prime, Hulu and similar must come up with a way to combat illegal activities. The situation seems to be stalemate, however, because it is not possible to verify realistically whether the package is used only by family members or a group of friends sharing a subscription jointly and severally. One way out of the situation may be to lower the prices of VOD services – for such a step in the first country Netflix decided. We are curious whether the company will go with the blow and lower subscription prices also in other countries.

Do you see anything wrong in sharing passwords?

Source: Hollywoodreporter