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Wednesday, July 12, 2017

Streaming Video Services Grapple With Shared Passwords


More than one-fifth of young adults who stream shows like "Game of Thrones" or "Stranger Things" borrow passwords from people who do not live with them, according to a Reuters/Ipsos poll, a finding that suggests media companies are missing out on significant revenue as digital viewership explodes.

According to Reuters, 21-percent of streaming viewers ages 18 to 24 said they had accessed at least one digital video service such as Netflix Inc, HBO Now or Hulu by using log-in credentials from someone outside their household at some time. Overall, 12 percent of adults said they did the same thing.

Subscription revenue is likely to come under scrutiny starting next week when TV industry players begin reporting quarterly earnings. Netflix, the dominant streaming service, releases its results on Monday.

Respondents to the Reuters/Ipsos survey said they borrow passwords to save money on video subscriptions, which can be cheap on their own but add up with multiple services.

Companies say they accept some sharing as a way to promote their programming to potential customers, but they also take steps to curtail blatant freeloading.

Many networks limit the number of people who can watch programming at the same time. Netflix, for example, allows two to four simultaneous streams per subscription, depending on the plan, and charges more for the higher number of streams.

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