Remember the old days when people would try to splice their neighbor’s cable to get all those extra channels for free? Sometimes the neighbor even knew about it, but turned a blind eye.
These days, stealing your friends’ and family’s entertainment is much easier, you just have to get their username and password. But are streaming services putting an end to the sharing?
I started doing my research after a friend seemed alarmed at lunch.
“Did you hear?” she asked in hushed tones. “Netflix isn’t going to let people share passwords anymore,” she said.
I’d seen a few headlines with that rumor, but couldn’t imagine how they’d stop it. Plus, it seemed like everyone already had a Netflix account. I mean everyone — the company has more than 158 million paid memberships. I do wonder, though, how many of those who chat about their favorite Netflix show actually pay for the service. No doubt many of them are using someone else’s account.
Magid conducted a study last year for CNBC and found 9% of customers are sharing passwords for streaming services. That’s not talking about Netflix alone, since Hulu, Amazon and others are all victims. But if 9% of Netflix customers are sharing their passwords, then approximately 14 million people are getting Netflix for free — meaning the company could be losing out on approximately $140 million every month in subscriptions.
So it would definitely be financially beneficial for Netflix to crack down. But if it does, there could be some love lost between the company and its customers. CNET reported on a SurveyMonkey poll in which more than one third of people said they’d quit a streaming service if it used artificial intelligence to stop password sharing.
Netflix knows people are sharing passwords, but for now will tread lightly. During the company’s third-quarter earnings interview, Chief Product Officer Greg Peters talked about what Netflix is doing about people who let others use their accounts.
“We’ll continue to look at the situation and we’ll see those consumer-friendly ways to push on the edge of that,” he said. “But we’ve got no big plans at this point in time in terms of doing something different there.”
Right now, depending on how much you pay, Netflix restricts how many devices can stream shows with one account. And it really only becomes problematic if too many people try to stream at the same time. All three of my kids and my husband are on my account and we were just fine paying for two devices when we all lived under one roof. But about a week after my twins went away to college, Netflix denied me when I tried to log in one night. It said there were already two devices streaming (my daughter watching “The Princess and the Frog” and my son watching “Lucifer”). Since it was 11 p.m. and my son had early morning classes, I texted him to log off so I could get on. Then a few nights later, it happened again. I realized this problem wasn’t going away and decided to be nice to my college freshmen and pay $7 more each month to enable four devices to stream at the same time. You’re welcome, Netflix (and freeloading college kids).
Hulu’s basic plan also only allows users to stream to two devices at the same time for as little as $5.99 per month. But they, too, will take more money from you if you’d like to upgrade. The company offers an add-on for $9.99 per month that allows you to stream to unlimited screens.
Amazon Prime’s retail component helps keep a handle on how many people are sharing an account. Since each Amazon Prime account is linked directly to a credit card, it’s unlikely that users will hand over login and password info for their Amazon accounts. Sharing an Amazon password is equal to sharing your credit card. No thanks.
Spotify is taking the most restrictive approach to customers sharing passwords. Its Premium Family plan is $15 per month for up to six people. But the company wants all those users living at the same address and it’s checking to make sure that’s happening. Within the past few months, Spotify changed its eligibility and verification procedures for Premium Family subscribers. They’ll need to use Google Maps address search to set their home address and are required to provide that location data. Spotify says it may “from time to time ask for re-verification of your home address” to make sure you’re still following the rules. If you don’t, the company says it may terminate or suspend the Premium Family account.
So the rumors that Netflix is putting its foot down when it comes to people sharing passwords are untrue for now. But while you may have the ability to give your streaming passwords to everyone you meet, I’d advise against it. Most people reuse passwords, so giving your Hulu password to someone may also mean you inadvertently give them the password to your online banking. Each time you share your password with someone, it gives more opportunity for your accounts to be exposed to hackers. Bottom line: Even though it may not be illegal, sharing passwords is risky.