Are you unknowingly risking your Netflix and Disney+ accounts? Warning issued for those sharing their passwords!
By
VanessaC
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As we step into the future, entertainment has also smoothly transitioned into the digital age.
Traditional television is slowly being replaced by streaming services such as Netflix, Disney+, Stan, Paramount+ among others.
These platforms are hugely popular in many countries, including Australia, with most enjoying regular movie nights in the comforts of their own home.
However, an upcoming change may threaten to disrupt this newfound convenience.
Data and insights firm Kantar recently released data that showed 56 per cent of viewers paid for their streaming costs themselves, while 26 per cent of people relied on others to shoulder their streaming costs.
This means there's a good portion of viewers out there who are streaming their favourite shows and movies for free courtesy of borrowed passwords despite the platforms' rules on password sharing.
Andrew Northedge, Consumer Director at Kantar, warned that platforms will be cracking down on the number of devices a subscriber can use with a single paid subscription.
'(Streamers) have been generous enough for years to let people share their account logins freely,' Mr Northedge said.
'Really, those devices are meant for the holder of the account, but people have bent the rules.'
Mr Northedge explained that, as streaming services look for alternative ways to increase their revenue, sharing accounts without paying extra will soon come to an end.
'Major global players' are said to be the first to implement these changes and will soon be followed by local streaming platforms.
Kantar’s findings also revealed that content and value for money were the key drivers of streaming platforms to attract consumers to sign up.
In Australia, many reportedly complain about not being able to find anything to watch despite being subscribed to at least three services per household, according to Foxtel Media and Kayo Sports Strategy and Growth Director Annie Griffiths.
'An unsettled economy makes for an unsettled viewer,' she said.
'Global players are managing for cost, cracking down on passwords, hiking prices, writing off content and adding advertising, and the writers' and actors' strike has been disruptive to upcoming content slates everywhere.'
This report comes after streaming giant Netflix started charging $7.99 per month for subscribers to share their account with another user from a different household.
This crackdown eventually led to a surge in new subscribers and a third-quarter growth of over 10 per cent, taking their total viewer base to a staggering 247 million.
They reported almost 6 million new members in the last quarter—in addition to the 3 million from the quarter before that.
This policy was introduced after the company went through a rough period, complaining that more than 100 million households were sharing accounts.
Not too far behind, Disney+ updated their subscriber agreement to limit password sharing and potentially block those who disobey the new rules.
Reportedly, the password-sharing ban will coincide with the arrival of advertisements on Disney+ this November 1.
Members, are you subscribed to any streaming platforms? Let us know which one (and your thoughts on these new rules!) in the comments below!
Traditional television is slowly being replaced by streaming services such as Netflix, Disney+, Stan, Paramount+ among others.
These platforms are hugely popular in many countries, including Australia, with most enjoying regular movie nights in the comforts of their own home.
However, an upcoming change may threaten to disrupt this newfound convenience.
Data and insights firm Kantar recently released data that showed 56 per cent of viewers paid for their streaming costs themselves, while 26 per cent of people relied on others to shoulder their streaming costs.
This means there's a good portion of viewers out there who are streaming their favourite shows and movies for free courtesy of borrowed passwords despite the platforms' rules on password sharing.
Andrew Northedge, Consumer Director at Kantar, warned that platforms will be cracking down on the number of devices a subscriber can use with a single paid subscription.
'(Streamers) have been generous enough for years to let people share their account logins freely,' Mr Northedge said.
'Really, those devices are meant for the holder of the account, but people have bent the rules.'
Mr Northedge explained that, as streaming services look for alternative ways to increase their revenue, sharing accounts without paying extra will soon come to an end.
'Major global players' are said to be the first to implement these changes and will soon be followed by local streaming platforms.
Kantar’s findings also revealed that content and value for money were the key drivers of streaming platforms to attract consumers to sign up.
In Australia, many reportedly complain about not being able to find anything to watch despite being subscribed to at least three services per household, according to Foxtel Media and Kayo Sports Strategy and Growth Director Annie Griffiths.
'An unsettled economy makes for an unsettled viewer,' she said.
'Global players are managing for cost, cracking down on passwords, hiking prices, writing off content and adding advertising, and the writers' and actors' strike has been disruptive to upcoming content slates everywhere.'
This report comes after streaming giant Netflix started charging $7.99 per month for subscribers to share their account with another user from a different household.
This crackdown eventually led to a surge in new subscribers and a third-quarter growth of over 10 per cent, taking their total viewer base to a staggering 247 million.
They reported almost 6 million new members in the last quarter—in addition to the 3 million from the quarter before that.
This policy was introduced after the company went through a rough period, complaining that more than 100 million households were sharing accounts.
Not too far behind, Disney+ updated their subscriber agreement to limit password sharing and potentially block those who disobey the new rules.
Reportedly, the password-sharing ban will coincide with the arrival of advertisements on Disney+ this November 1.
Key Takeaways
- Streaming platforms like Netflix, Disney+, Stan and Paramount+ are set to crack down on password sharing as a means to increase revenue.
- Data from Kantar revealed that 26 per cent of people rely on others to pay for their streaming costs, despite clampdowns on password sharing.
- Netflix introduced a charge of $7.99 per month for subscribers to share their accounts with other users from different households, resulting in a significant increase in new subscribers.
- Disney+ has reportedly updated its subscriber agreement to prohibit password sharing, with non-compliant users potentially facing a ban from the service.