Streaming platforms will follow the lead of Netflix and Disney+ in a crackdown on password sharing, with companies exploring new ways to increase revenue.
Data from data and insights agency Kantar showed that 56 percent of viewers paid for their own streaming costs.
The September quarter data for subscription on-demand services shows that 26 percent of people rely on someone else to pay their streaming costs, despite the platform’s stricter password-sharing measures.
The data also showed that 10 percent of people relied on a platform’s free trial offer.
Consumer Director at Kantar Andrew Northedge said streaming platforms will crack down on the number of devices a subscriber can use on one paid subscription.
Data released by data and insights firm Kantar shows that 26 percent of people rely on someone else to pay their streaming costs, despite platforms like Netflix restricting password sharing
“(Streamers) have been generous enough for years to let people freely share their account login details,” Mr Northedge told me The Australian.
‘Really, those devices are intended for the account holder, but people have bent the rules.’
Mr Northedge believes the move to prevent people from sharing accounts without paying extra could end as streaming services look for alternative ways to boost revenue.
He added that “major global players” will be the first to make changes before local streaming platforms follow suit.
Foxtel Media and Kayo Sports strategy and growth director Annie Griffiths said Australian streamers are complaining they can’t find anything to watch, despite having an average of three services per household.
“(A) troubled economy makes for a troubled viewer,” Ms Griffiths said.
“Global players are controlling costs, cracking down on passwords, raising prices, writing down content and adding ads, and the writers’ and actors’ strike has disrupted upcoming content plans everywhere.”
It comes after Netflix introduced a $7,999 per month fee for subscribers to share their account with someone else in a different household.
Netflix’s password crackdown in May has seen the streaming giant add new subscribers at a rapid pace, with viewership growing by more than 10 percent to 247 million in the recently concluded third quarter.
It reported nearly 6 million new members last quarter – on top of 3 million before – after the Silicon Valley giant expanded its ban on user password sharing.
In September, Disney+ also unveiled the first phase of a crackdown on passwords, copying its rival’s move
Netflix introduced this policy in an effort to shore up revenues after a rough patch, complaining that more than 100 million households were sharing accounts.
In September, Disney+ also unveiled the first phase of a crackdown on passwords, copying its rival’s move.
As first noted by unofficial fansite whatsondisneyplus, Disney+ has just updated its subscriber agreement to ban password sharing.
Those who don’t comply could be banned from using Disney+, the new subscriber agreement suggests.
It’s thought the ban on password sharing will coincide with the arrival of ads on Disney+ in Britain and other countries on November 1.
Kantar’s findings also showed that content and value for money were the key drivers driving consumers to sign up to streaming platforms.