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Netflix Password Sharing: Is It Piracy?

An article by MarketWatch includes comments from Goldman Sachs Analyst Heath Terry, who suggests the possible intent of Netflix behind targeting the HD plan. “We believe a targeted price change like this is designed to reduce excessive password sharing by incentivizing users to switch to the 1-screen plan,” Terry said.

The price of both single screen streaming plans and the two-screen HD plan is the same at $7.99. An important question is whether password sharing outside the home is really a piracy threat to major companies like Netflix.

The answer to this is no, but this does not mean that it is not prevalent, the report says. In a study earlier this year, Parks Associates found that nearly 57% of the U.S. households access an over-the-top video account, which could be Netflix, Hulu or HBO Go, but 11% of Netflix, 10% of Hulu Plus and 5% of Amazon Prime Instant Video subscribers make use of an account for which payments are made by someone else.

From the article "Netflix Password Sharing: Is It Piracy?" by Aman Jain.

Previously In The News

People Sharing Netflix, Hulu, Cable Passwords with, You Guessed It, Millennials in the Lead

The overall numbers have increased over time, based on research reports issued on a regular basis. In 2015, Parks Associates said that 10% of U.S. households with broadband used a streaming-service ac...

Wall Street isn’t sure Roku can lead cord cutters to the promised land

One of the secrets of Roku's success has been its expansion beyond its roots as a set top box maker (a term the company tries to avoid). To do this, Roku CEO Anthony Wood built a loyal customer follow...

Roku Shares Skyrocket Due to Impressive Streaming Numbers

So far, Roku has been able to keep its lead as the top video streaming device maker. In May, for instance, research firm Parks Associates said Roku was the market leader in the Internet video streamin...

Streaming companies to see $12.5B in lost revenue by 2024 due to piracy, password sharing: report

The analysis, compiled “360 Deep Dive: Account Sharing and Digital Piracy” by Park Associates, a research and consulting company that specializes in technology, found the amount of revenue lost will i...

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