Did you know Streaming and Password Sharing: The Affordable Solution Still Poses Risks
Streaming services have become a daily part of people’s lives, whether it’s streaming your favorite artist’s latest album or throwing on a comfort show after work. It seems like not long ago, you would have to scroll through endless TV channels to finally land on something worth watching. Once you found something, whatever you were watching was riddled with advertisements and commercials. On top of this, cable became expensive.
The initial appeal of streaming services played to these weaknesses cable providers could not circumvent. Cable companies couldn’t provide entertainment on demand without ads and even bundles with internet service providers seemed unappealing to customers.
However, what once seemed like a cost-effective alternative to traditional cable has now started to stretch consumers’ wallets thin. Prices continue to rise and consumers are left scrambling for ways to cut costs. Many are cancelling their subscriptions entirely, left unable to justify the price anymore.
For those still trying to make streaming work for them, many have tried password sharing — which ultimately may still become an unviable option.
Streamflation: Consumers Now Pay a Premium
Many seasoned streamers remember the days when Netflix charged around $8 per month for unlimited ad-free streaming. Now, users will pay the same amount to have their favorite show interrupted by ads.
Netflix isn’t the only streaming service guilty of this. The majority of the other streaming services also used to provide ad-free streaming to their customers as a part of their monthly subscription cost. Consumers were then shocked to find ad-free viewing now comes at a premium. MAX (formerly HBO Max), Apple TV, Hulu, and Disney+ have adjusted their pricing models where users must choose between ad-supported subscriptions or more expensive premium ad-free tiers.
What’s behind all the price hikes? Streaming companies have cited rising production costs, hefty licensing fees, market saturation and competition, and general economic inflation.
As streaming prices continue to rise, consumers are put in positions where they have to get creative on how to enjoy their favorite entertainment without breaking the bank. Many will rotate subscriptions, choosing which to pay for on a month to month basis. Ad-supported tiers have been helpful, but users haven’t shied away from free alternatives, even if they're illegal like torrenting.
A common sentiment among users is that streaming has become just as expensive as cable once was. You need to subscribe to multiple services to access the content you want, and the costs quickly add up. Subscribing to Netflix, Hulu, Disney+, MAX, and Prime Video can easily exceed $60–$80 per month.
Some consumers feel the quality of content nowadays doesn’t justify the price they pay. Original programming remains a strong selling point, but recent releases have been met with low viewer satisfaction. For example, the highly anticipated second season of MAX original House of the Dragon left many viewers wanting more.
In the same vein, streaming services lose subscribers when they remove fan favorites. When Netflix toyed with removing The Office for the first time, viewers were hard pressed to see their favorite comfort show go.
How Common is Password Sharing?
One of the more popular ways viewers have tried to circumvent paying sky-high prices for their preferred streaming services is sharing their accounts’ passwords with others — whether it’s parents sharing their streaming passwords with their children, or friends sharing login credentials with each other. A recent study from All About Cookies revealed just how common password sharing is. 59% share at least one password with others.
Streaming services like Netflix were the most commonly shared passwords. More than 2 in 5 shared their streaming passwords with someone else. However, TV and movie streaming aren't the only accounts people share. More than 1 in 10 share their music streaming passwords with others.
Password sharing makes streaming subscriptions more affordable for the consumer, but causes companies to lose revenue. When multiple users are accessing a single subscription, providers are not able to capitalize on each of those users having their own separate subscription they pay for individually.
In an effort to mitigate losses and increase their user base, streaming services have begun “password crackdowns”.
There are multiple strategies streaming services have begun implementing to prevent password sharing.
The first of these is tracking IP addresses. Some services track users’ login locations via their IP address. They’re able to pinpoint where users are logging in and detect multiple users in different households.
Another strategy services use is requiring two-factor authentication when logging in. Disney+ is currently experimenting with 2FA by having users verify themselves via the phone number or email address attached to the primary user’s account.
Some services will also limit the number of simultaneous streams to prevent unauthorized sharing. If too many users are streaming at once from the same account, this can flag a prohibited amount of shared profiles on one account.
These measures have proven to be rather effective. Netflix in particular was able to add nearly 19 million new subscribers at the end of 2024. Although these methods are effective, they’ve sparked a lot of frustration. Many subscribers have been left feeling that streaming companies are prioritizing profits over customer satisfaction. Many subscribers believe that sharing an account with family members outside their household should not be restricted, especially given the increasing costs of subscriptions.
Is Password Sharing Risky?
It’s no secret we’re living in the digital age. Online accounts store every part of everyday life from banking to social media. Given this, practicing healthy password habits is more important than ever. Unfortunately, while convenient and a great hack to save money, sharing passwords is still considered unsafe as far as cybersecurity goes.
Many people likely share their passwords with friends and family under the assumption that it's completely harmless. However, sharing your account credentials can lead to significant consequences.
When you share the password to one of your accounts, you effectively lose control over who has access to your account. Even if you trust the person you share it with, they might not be as cautious as you are. They could store it insecurely or even share it with someone else without your knowledge. This increases the risk of unauthorized, potentially dangerous activity on your account.
The previously mentioned study from All About Cookies also shows 50% of internet users re-use passwords across different accounts. If you’re using the same password for multiple accounts, and you’ve shared that password with someone else, that means you’ve given someone access to many accounts at once, likely unintentionally.
While a trusted friend or family member is unlikely to put you in harm's way intentionally, if they’re careless with their password habits, your personal data can be compromised. Likewise, if your credit cards or banking information is attached to any of these accounts, the risk for costly unauthorized transactions becomes greater.
Moreover, once an account password is compromised, regaining control can be challenging. If the password ends up getting changed and you end up locked out, you may have to go through lengthy recovery processes to regain access.
Bottom Line
The rising cost of streaming services has caused a butterfly effect within the streaming industry. Prices have gone up, causing more and more users to share their passwords, leading to a widespread crackdown on password sharing. While these crackdowns attempt to keep companies profitable, they also pose challenges for consumers wanting to keep the full catalogue of their preferred subscriptions.
On the other hand, while it may seem convenient to share passwords with close friends or family, that doesn’t mean it comes risk-free. Keeping your passwords private helps protect your identity, finances, and personal data from cyber threats. In today’s digital world, cybersecurity should be a priority, and that starts with safeguarding your passwords.