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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

Top 10 Streaming Services Ranked

Sling TV is on its way up and Sony PS Vue is still outside of the top 10 OTT services. Parks Associates released its 2016 top 10 service providers list showing a stable top 5 with indications that all...

Sharing Netflix Passwords Makes You Federal Lawbreaker?

Variety reported last year that the research firm Parks Associates estimated that "illicit password sharing" to video on demand players used by Netflix, HBO and other Internet subscription providers c...

Sharing Your Netflix And HBO Go Passwords Is Now A Federal Crime

In a study published by research firm Parks Associates, it estimated that streaming services would lose $500 million in revenue from password-sharing in 2015, but Netflix still doesn’t seem so concern...

Survey: Internet-Only TV Households Reach 17%

In related news, Parks Associates recently reported that the rate of cancellations for internet (a.k.a. OTT) video services among U.S. broadband households has held steady over the past three years at...

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