How is Netflix going to stop password sharing?

There was a time when the Netflix CEO said that password sharing is "something to get used to". Which made sense back then, since pretty much everyone did it in some form. Basically, Netflix was of the opinion that it will not tolerate password sharing, but will simply not do anything about it. Until now.

Streaming wars are heating up, especially with the launch of Apple TV + last week, the upcoming Disney + debut next week, and future services from HBO and NBC. Despite the fact that all of these key players are fighting, there is one fight in which they are all on the same page: stopping the password exchange.

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Or, as they call it, "piracy".

We have certainly come a long way since the MPAA and RIAA fought Napster and other file sharing services to prevent people from ripping their CDs and DVDs and sharing them online. I don't even know anyone who still buys DVDs, and my kids don't even know what CDs are.

However, when a service reaches a subscriber saturation point, two things happen at some point: people no longer sign up for new streams because their budget only costs so much and they share their accounts with others. When you try to build an audience, the last thing you want is for people to free their parents, friends, roommates, or neighbors.

And if you're an established player like Netflix, Hulu, or Amazon Prime, you'll see that at some point, a certain percentage of these freeloaders are real revenue losses. Which is the whole point in the long run if you spend billions and billions of dollars a year to license or create content and deliver it to people's homes and phones. How to fix Netflix black screen & Netflix not working problems.

Look, it is perfectly reasonable for Netflix to say, "We really want college students to pay for their own subscriptions, but we know it doesn't, so we enjoyed downloading them for free . But now you're grown up. " and it's time to pay. "The trick is that companies are certainly not interested in infuriating a lot of people because crazy people don't usually rush to sign up for your service.

However, these steps show how important it is for streaming service companies to maximize every opportunity to build a paying audience. Especially if the new players (especially Apple and Disney) want to offer free trials for a year to get viewers to stay.

The bottom line is: The day is coming when you may actually have to decide whether it's worth paying for strangers and The Handmaid's Tale or Star Wars and The Morning Show. When that day comes, you need to decide which stream - source of income - you want to contribute to.