Sharing accounts in streaming services such as Netflix or HBO has become a common practice for many users, and although these and other companies in the sector, for now, let this type of practice pass, the future could be different.

This is indicated in Bloomberg, where sources close to the plans of these companies reveal that they are considering using techniques such as forcing users to change their password frequently, using 2FA two-step authentication systems or even biometric systems such as fingerprints to reduce a problem that is costing them "billions of dollars." 

Many people share accounts on Netflix, HBO, and other services

A recent study showed that sharing accounts of these streaming services is becoming a widespread practice, especially in young people. It is estimated that 35% of millennials share passwords, for example, compared to 19% of generation X (born between the mid-60s and early 80s) and 13% of Baby Boomers (from 1946 to 1964).

In Netflix specifically, it is estimated that slightly less than 10% do not pay for their accounts, something for which the company has never shown too much concern. Reed Hastings indicated in 2016 that sharing passwords "has not been a problem," and HBO CEO Richard Pleper also said something very similar in 2014 when he said that although that was happening, "it is not a fundamental problem."

Maybe it was not then, but it can be now in certain markets such as the US, where Netflix sees how growth is slowing, and there is some saturation that will be aggravated with the launch of Disney+, which is now available for the US - or Apple TV+.

This means that several of these platforms are contemplating ways to minimize the problem of shared accounts. At a conference for investors in October, Netflix Chief Product Officer, Greg Peters, said they are " looking at the situation " and looking for ways to improve it, but gave no details beyond those statements.

Movement between streaming platforms

Now there might be potential changes in the way you access these accounts. Two years ago, the consortium called Alliance for Creativity and Entertainment (ACE) was formed, and it included Netflix, Amazon, Disney, and HBO, among others. Although a spokesman for this agency indicated that they would not be involved in these possible measures, they stressed that their mission is "to protect the legal market from creative content and reduce piracy."

The truth is that services such as Netflix or HBO have helped mitigate piracy: users have an affordable, comfortable and very powerful alternative when it comes to enjoying video content, although experts believe that the war for streaming to which more companies have been added revive piracy because it will be rare for all users to subscribe to many of these services.

That makes these companies go with lead feet when making users angry and stop subscribing to their services. Still, market saturation can cause measures to come into play to reduce the way accounts and passwords are shared.

One of them could be to force users to change the password on a frequent basis, something that would prevent the theft of account credentials from being able to enjoy these services for free. There is also an option planted to use two-step authentication systems (2FA).

There is a third more delicate possibility that would consist of the obligation to use biometric systems that, for example, make the user use a fingerprint reader to be able to confirm access to these platforms on certain devices. The option of associating the service with certain devices is also considered - as Dropbox does, for example - so that you have a certain number of devices on which you activate the service, and you can enjoy it: if you do not eliminate the association of a device with the service, you can't use it in a new one.

At the moment, there are no decisions on what measures to take and how they should be applied, especially because doing so poses risks, especially among younger consumers. Mike McCormack, an analyst at Guggenheim Securities, explained that "your questions to any group of young people if they will pay for Netflix or video services, the unambiguous answer is no."

Meanwhile, different service providers maintain different policies for shared accounts. Netflix and HBO are more permissive, and for example, Apple TV + also allows up to six family members to share a subscription.

In the case of Disney + the company indicated that it would implement measures to "mitigate piracy" but at least at this beginning of activity it acts in a similar way to others: it allows the content to be reproduced on up to four devices simultaneously, in addition to each account can have seven different profiles.