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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

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Only 4% Of People Share Passwords For Services Like Netflix Outside Their Families

Last year, a report from Parks Associates estimated the industry would lose $500 million to password sharing in 2015. This data suggests that might be a bit of an overstatement given the likelihood of...

Sharing Netflix Or HBO Go Passwords Is Technically Federal Crime Under 9th Circuit Ruling

“The majority is wrong to conclude that a person necessarily accesses a computer account ‘without authorization’ if he does so without the permission of the system owner,” Reinhardt wrote in his disse...

Netflix's Competitors Are Quickly Closing The Gap in A Crucial Area

Netflix customers are loyal. In research published this April, analysts from Parks Associates found that Netflix subscribers were much less likely to cancel than those of Hulu or Amazon Prime Video. O...

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