If logging in gets too cumbersome, cable subscribers could get frustrated and cancel.
SPECTRUM SIGN IN PASSWORD
“You’ll see legit owners of accounts who don’t know their username and password is being shared with 50 people,” he said.īut cracking down on password sharing can be risky. Adobe sees an uptick in illicit streaming before major sporting events. Some passwords are sold in dark corners of the internet, Foster said.
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The TV industry, for the most part, is fine with that but worried about those students sharing credentials with their friends. Parents, for instance, will often let their children at college stream from their accounts. Most credentials are being swapped among friends or relatives, Foster said. Password sharing “is still relatively small and we are seeing no economic impact on our business,” said Jeff Cusson, a spokesman for HBO.
In fact, some companies still say they’re not worried. Media executives have insisted for years that password sharing wasn’t a big problem, viewing it as a way to market their content to the next generation.
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“It’s become more of an issue, and it’s being exacerbated by cord cutting,” said Campbell Foster, director of product marketing at Adobe Systems Inc., which sells software that media companies use to monitor the location and number of people streaming their apps from each account. That lost revenue is especially important because the pay-TV industry is already losing subscribers to cheaper online rivals like Netflix Inc. The TV industry’s losses from password sharing are expected to rise to $9.9 billion by 2021 from $3.5 billion this year, the research firm estimates. broadband households admit to either using someone else’s credentials to stream cable TV or sharing their login info with someone outside their home, according to Parks Associates. TV Everywhere was slow to catch on but is gaining popularity as more people get used to streaming on phones or tablets. Started in 2009, the idea was an attempt to appeal to young consumers by letting them access cable or satellite shows on any device. The problem stems from an industry concept called TV Everywhere. ESPN wants to work more closely with distributors to validate subscribers when there are high volumes of streaming on its app outside the cable company’s territory. The cable company wants programmers to restrict the number of concurrent streams on their apps and force legitimate subscribers to log in more often, according to two people familiar with the matter who asked not to be identified discussing private deliberations.ĮSPN, meanwhile, has reduced the number of simultaneous streams that it allows on its app to five from 10 and is considering cutting that to three, Connolly said. During contract negotiations this fall, Charter urged Viacom Inc., home of Comedy Central and MTV, to help limit illicit password swapping. Most pay-TV companies only require users to re-enter their passwords for each device once a year. But the prevalence of password sharing suggests many of those customers, and possibly many more, are watching popular shows like “The Walking Dead” for free, robbing pay-TV providers and programmers of paying subscribers and advertising dollars. Cable and satellite carriers in North America have lost 3 million customers this year alone.
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