The Synamedia Credentials Sharing Insight doesn't just crack down on small-time sharing issues, like a user having the same login as their younger brother in college.
Recent research from Magid found that roughly a quarter of millennials share their username and password for video streaming services with friends. For many, password sharing is a no-hassle method of introducing their services to new customers. "It allows operators to turn casual sharing into incremental revenue, as well as detect and apply enforcement procedures on fraudulent, for-profit credentials sharing accounts".
Synamedia's program would also give Netflix data on where the account is being accessed from, what time it is used, what content is being watched and by what device. In the case of the latter, these users will be offered a premium shared account service that includes a pre-authorized level of password sharing and a higher number of concurrent users. Two years ago Netflix announced a change to crack down on VPNs so that users in the United Kingdom could no longer tweak their DNS settings to access U.S. content and vice versa.
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Synamedia called password sharing between friends and family members "casual sharing", a common practice that Netflix CEO Reed Hastings once described as a positive thing since people who do this are likely to become paying subscribers of the service. In an interview with Variety, Synamedia's CEO said, "The way you secure OTT is evolving".
Synamedia aims to crack down on password sharers with a new system that streaming services can pay to access.
"Casual credentials sharing is becoming too expensive to ignore". According to a report by Parks Associate, users' habit of sharing passwords of streaming services with their friends could dent a whopping $9.9 billion to the industry by 2021.
The company said it is now conducting trials with several pay-TV operators albeit it did not provide further details on which ones.