Many of us were taught to share as kids. Now streaming services ranging from Netflix to Amazon to Disney+ want us to stop.
That’s the new edict from the giants of streaming media, who are hoping to discourage the common practice of sharing account passwords without alienating subscribers who’ve grown accustomed to the hack.
Password sharing is estimated to cost streaming services several billion dollars a year in lost revenue. That’s a small problem now for an industry that earns about $120 billion annually, but something it needs to address as spending on distinctive new programing skyrockets. Amazon’s upcoming “Lord of the Rings” series will reportedly cost $450 million for its first season alone – more than four times the cost of a season of HBO’s “Game of Thrones.”
“Frankly the industry has been gravitating toward that. It’s a question of when, not if,” said CFRA analyst Tuna Amobi. “The landscape seems to be pretty set in terms of these new entrants, so it seems like a good time to get a much better handle on subscribers.”