Password sharing, not VPN, costing streaming services "billions" every year

Shadowed hands on a digital background reaching for a login prompt.
Image Credit: Shutterstock (Image credit: Shutterstock)

Last year alone streaming companies lost around $9.1bn to password piracy and sharing but new research from Parks Associates predicts that this number will rise to $12.5bn in 2024.

Now though, many streaming services such as Netflix, Hulu, Disney+ and Amazon Prime are willing to let password sharing slide even while they work to crack down on the proliferation of sites that sell passwords illegally.

Another study, conducted by the video delivery and security firm Synamedia, found that two anonymous video providers are losing over $70m each year from password sharing.

A generational gap also exists when it comes to password sharing according to a study from Hub Entertainment Research which found that 31 percent of all consumers have shared their streaming service passwords with someone who doesn't live with them. However, the study also found that 64 percent of people 13-24 years old had given out a password which is much higher than the 16 percent of users over 35 who had shared their streaming passwords with others.

Password sharing

Principal at Hub Entertainment Research, Jon Giegengack explained that the password sharing problem is likely to continue to grow due to a cultural shift among younger generations, saying:

“There is a cultural shift particularly among young people, where sharing things with people you know, or them sharing with you, is an accepted way of doing business, and it is an attitude that is going to impact how they consume lots of things, not just TV and movies.”

One way that streaming services can combat password sharing is to charge more for subscriptions that have multiple streams playing at once. However, another option involves new software showcased at CES 2020 which can help identify users who are sharing passwords or pirating content.

VPN services have come under pressure lately for allowing users to watch content not available in their region but the effect they have on streaming services' revenue pales in comparison to password sharing.

  • Also check out our complete list of the best VPN services

Via Hollywood Reporter

Anthony Spadafora

After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home. 

Latest in VPN Privacy & Security
Homepage of CloudFlare website on the display of PC, url - CloudFlare.com.
"Network blocking is never going to be the solution" – Cloudflare slams anti-piracy tactics
Panels at RightsCon 2025 during a press briefing about the latest Access Now report of internet shutdowns
2024 was the worst year on record for internet freedoms – again
Vector illustration of the word Censored in a glitch distorted style
Google, Apple, and internet restriction – how Big Tech is making censorship "much worse" according to experts
Google TV onscreen interface showing streaming apps
Why do streaming services geo-restrict content?
Pirate key on computer keyboard
Italy to require VPN and DNS providers to block pirated content
piracy
Canal+ wants to block VPN usage – and VPN providers are fuming
Latest in News
An Nvidia GeForce RTX 5080 resting on an RTX 5090 on a gray crafting mat.
Corsair tells us only one of its prebuilt PCs with an RTX 5000 GPU has suffered from chip-level fault, suggesting it’s as rare as Nvidia claimed
ChatGPT WhatsApp
New survey suggests the vast majority of iPhone and Samsung Galaxy users find AI useless – and to be honest, I’m not surprised
A hunter holds up a Grav Bowfin and smiles
How to catch a Gravid Bowfin in Monster Hunter Wilds
Quordle on a smartphone held in a hand
Quordle hints and answers for Friday, March 7 (game #1138)
NYT Strands homescreen on a mobile phone screen, on a light blue background
NYT Strands hints and answers for Friday, March 7 (game #369)
NYT Connections homescreen on a phone, on a purple background
NYT Connections hints and answers for Friday, March 7 (game #635)