In 2019, companies lost about $9.1 billion to password piracy and sharing. From a report: On Dec. 9, Charter Communications CEO Tom Rutledge took aim at the “content companies” entering the direct-to-consumer streaming business. The cable executive told a roomful of investment bankers in Manhattan that these new streamers are “creating havoc in the ecosystem.” Rutledge wasn’t talking about the proliferation of content or the fight to secure exclusive deals with talent. He was targeting the lax security and rampant password sharing that’s prevalent across the streaming landscape. “Half the people in the country live in houses with two or less people in them, and yet these services have five streams,” Rutledge added. “There are more streams available than there are homes to use them.” Password sharing has serious economic consequences. In 2019, companies lost about $9.1 billion to password piracy and sharing, and that will rise to $12.5 billion in 2024, according to data released by research firm Parks Associates.
For now, many streamers — including Netflix, Hulu, Disney+ and Amazon Prime — seem content to allow the practice to continue, even while they crack down on illicit password sales. But as services mature, priorities will likely change. “When the growth starts to flatten and you start to look at the balance sheet, you are going to be looking for revenue,” says Jean-Marc Racine, chief product officer of video delivery and security firm Synamedia. The company (which counts Disney, Comcast and AT&T among its clients) conducted a study of two anonymous video providers and said Jan. 6 that it found they were losing more than $70 million annually from password sharing.
of this story at Slashdot.
Source:: Slashdot