More streaming companies set to clamp down on password sharing, following Netflix and Disney+

An increase in streaming giants clamping down on password sharing is expected in 2024, as companies look for ways to increase revenue.

An increase in streaming giants clamping down on password sharing is expected in 2024, as companies look for ways to increase revenue.

Andrew Northedge, consumer director at data and insights firm Kantar, said the move to stop people sharing accounts without paying any extra will eventually come to an end.

“I think it will come from the major global players, first and foremost, and some of the local players might follow suit,” he told The Australian.

“Given the technical expertise and systems the streamers have in place, they’ll be looking for new revenue streams.”

Kantar data for SVOD (subscription viewing on demand) services in the September quarter showed 56 per cent of people paid streaming costs themselves, 26 per cent had someone else pay and 10 per cent relied on a free trial. In May, Netflix began clamping down on password sharing around the world including in Australia, and remains one of the most popular streaming services here, despite intense competition.

Netflix introduced a new charge of $7.99 per month to share an account with someone in a different household. Despite this, Kantar research showed just 2 per cent of users sharing with someone outside their household.

One of Netflix’s most-talked about shows recently has been the four-part docuseries, Beckham, which goes behind the scenes with footballer David Beckham to reveal how his talent propelled him from humble beginnings to international stardom.

 

Mr Northedge said streamers are also becoming clearer about how many devices can be used on one paid subscription.

“Really, those devices are meant for the holder of the account but people have bent the rules,” he said.

“(Streamers) have been generous enough for years to let people share their account logins freely.”

Foxtel (65 per cent owned by News Corp, publisher of The Australian) last week announced the rollout of new technology, Hubbl, which will give users a smoother experience when browsing streaming apps. It will present one user interface, saving viewers from having to jump in and out of apps to hunt for new content.

The new technology, to be launched here in coming months, is another significant move in the streaming industry in Australia, where competition remains fierce – there are more than a dozen paid services on offer.

Foxtel Media and Kayo Sports strategy and growth director Annie Griffiths said at the media company’s Upfronts event in Sydney on Thursday the “so-called streaming wars are peaking”.

“Global players are managing for cost, cracking down on passwords, hiking prices, writing off content and adding advertising, and the writers’ and actors’ strike has been disruptive to upcoming content slates everywhere,” she said.

“According to Accenture, Aussies are the most frustrated in the streaming world: despite having an average of three services per household, many complain they can’t find anything to watch.”

She said an “unsettled economy makes for an unsettled viewer” and consumers looked for value from service providers.

Disney+ is another global streaming player that has cracked down on password sharing.

Kantar’s September quarterly findings also showed that top content and value for money are among the key drivers to attract consumers to sign up to a streaming service.

Subscribers signing up to AVOD (advertising video on demand) services also increased by 10 per cent quarter on quarter.