The king of the streaming services is Netflix. They have dominated that industry for many years. As much money as Netflix makes, they could be making much more. This is because it is estimated that as many as 14 million people share their password. They do this to allow people to access Netflix without actually having to pay for the service. If the 14 million number is correct, that would mean the streaming giant would lose somewhere around $130 million every month. Needless to say, that figure has not escaped the notice of the people who run Netflix.
There is technology being developed that would help companies like Netflix to crack down on the epidemic of password sharing that is going on all around the world. However, Netflix has not implemented any such measures yet. An executive at the company said that there are no plans to start cracking down on password sharing. This is a very delicate topic. If Netflix handles it in the wrong way, they stand to lose a lot more money than they already are right now from passwords being shared. This is because the goal of the company is to get the non-paying people to start paying. Therefore, taking action to block their access could anger them to the point where they never subscribe.
Netflix also risks angering the people who are actually paying for an account and sharing the password with their friends or family. Netflix cannot afford to alienate paying customers when the streaming wars are right around the corner. It will be interesting to see what measures, if any, Netflix decides to take in an effort to reduce the sharing of passwords. There has been rumors that Netflix would put a limit on the number of devices that could be logged into the service at one time using the same password. However, they have not done that yet.
The problem of password sharing does not only involve paying customers who are willingly allowing other people to use their Netflix password. There is also a black market for these passwords. Hackers will routinely steal passwords and sell them online. A person will then buy the password and log in without the paying customer ever being the wiser. Netflix also understands that piracy is a huge problem that needs to be looked into. There will always be a black market for stolen Netflix passwords because there is a demand for them.