Companies are considering ways to cut off people who borrow passwords from friends and relatives to watch programming without paying for it.
A coalition that includes Netflix Inc., HBO and cable industry titans is stepping up efforts to crack down on password sharing, discussing new measures to close a loophole that could be costing companies billions of dollars in revenue each year.
If none of those tactics works, pay-TV subscribers could someday be required to sign in to their accounts using their thumbprints.“I feel like I’m beating my head against the wall,” Tom Rutledge, the chief executive of Charter Communications Inc., said during an earnings call last month. “It’s just too easy to get the product without paying for it.”
The pay-TV industry is projected to lose $6.6 billion in revenue from password sharing and piracy this year, according to Parks Associates. By 2024, the number could grow to $9 billion, the research firm said.Two years ago, some of the biggest names in entertainment and technology formed a group called the Alliance for Creativity and Entertainment, which was devoted to reducing online piracy. Last month, the group announced that it’s turning its attention to password sharing.
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