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Swap you a DStv login for your Netflix password?

One of you is scoring there, considering that DStv costs close to a grand each month and Netflix less than R200.

Those days are drawing to a close after DStv announced a maximum of one person at a time can watch DStv Now. For Netflix, password sharing remains a massive problem but there are plans to crack down.

According to Fortune, the streaming giant misses out on around $6,25 billion (roughly R90 billion) in revenue per year due to password sharing, with much of the problem due to illegal marketplaces:

The marketplaces, such as TogetherPrice, offer access to subscriptions for as little as $1, allowing customers to share subscription costs.

Now Netflix is planning to fight back.

Last month, the streaming service rolled out a new option allowing users to add someone to their plan for as little as $2 a month. However, this deal is offered only in some countries like Chile, Costa Rica, and Peru.

According to a report by US financial services company Citibank, password sharing costs the streaming service industry up to $25 billion a year.

Netflix began warning users not to share passwords with people outside of their households last year. It also threatened to charge extra for accounts that were found to do so.

It’s quite an about-turn from the tune it was singing in 2017:

pic.twitter.com/YmOsQZk98T

— Poorly Aged Things (@PoorlyAgedStuff) March 21, 2022

Research shows that the age group most prone to password sharing is those between 18 and 24. That might have something to do with the terrible wages paid to many in this bracket, which have never really kept up with the increase in the price of living.

The cheapest Netflix subscription in the US is $9,99 a month, and a premium account will set you back $19,99 a month. In South Africa, the basic subscription (not the mobile option, which is R49) is R99 a month and the premium is R199 a month.

The LA Times reports that after years of letting users get away with sharing, and allowing illegal marketplaces to operate unchecked, a line is being drawn in the sand:

“In the past, credential sharing has been tolerated because it’s a form of growing your audience, the popularity of your brand and your service,” said Ken Gerstein, vice president of sales at NAGRA, a Swiss company that advises streamers and others on antipiracy measures.

“But there’s a point where competition starts to limit growth … We see a tipping point that is starting to have such an impact on subscriber growth, that it’s forcing the streamers to start taking action.”

By the way, and I’m only saying this because I’ve heard of it happening before, make your Netflix password something different to your other passwords if you intend to share it with a mate.

A study by the Advertising Research Foundation that surveyed 10 400 adults found that 36% of Netflix subscribers shared their password with at least one relative outside of their household, and 13% shared their password with a friend outside of their household.

You probably don’t want either of those parties checking if the same password also gets them into your online banking.

[sources:fortune&latimes]