Constant dollars

Rampant Password Sharing Is Hindering India’s OTT Gamer User Growth

If you’re someone who relies on friends’ passwords to binge watch Netflix or Amazon Prime Video, you’re helping OTT gamers lose millions of dollars every year due to passwords being shared between friends or family members.

As OTT platforms witness an increase in subscriptions amid the pandemic, the issue of password sharing has also grown and resulted in slower user growth for several players.

Major OTT giants, including Netflix, are working tirelessly to solve the problem of password sharing.

The streaming giant recently said it plans to suspend password sharing outside of a single household by charging additional fees to users.

Netflix said it will launch and test two new features in select markets, where members will have to pay an additional $2-3 to share their passwords with people outside their home.

Faisal Kawoosa, founder and chief analyst at market research firm Techarc, said stopping password sharing can only happen if there is a “hard link” of the account to the device.

“There are many techniques like ‘MAC bonding’… But even that can be flouted because usually they would allow on two devices – a smartphone and a smart TV. So even if I want to share the credentials of the account with someone, one would watch on a smartphone and another on Smart TV,” Kawoosa told IANS.

“OTT platforms need more security, for example using location-based methods where it is possible to run the account in a geo-fenced area,” he added.

“Mac Binding” means binding MAC and IP addresses together, so that all requests from that IP address are served only by the computer having that particular MAC address.

In March 2021, Citi analyst Jason Bazinet estimated that sharing passwords online with subscription video-on-demand (SVOD) services meant a massive $25 billion annual loss for American businesses. , estimating that a single company accounts for about 25 percent. cent (i.e. approximately $6 billion) of this shortfall.

According to a recent report by Variety, the problem with password sharing has gotten much worse.

The report cites a survey of 1,500 US consumers that found 40% use a streaming ID and password that doesn’t belong to them, and about a third do so without the account holder’s permission.

Experts have mentioned that there are a variety of methods to detect password sharing, but most now use artificial intelligence (AI) to identify password sharing by tracking location, password patterns, and password sharing. usage and other factors across multiple devices.

A detection service looks for patterns that involve a shared password by analyzing what content is being viewed, analyzing what device it is being viewed on and where it is being viewed from. The AI ​​then provides the service provider with a probability score indicating the likelihood of the account holder being “overshared”.

As OTT platforms continue to suffer losses from password sharing threats, it won’t be long before paying users in India are forced to pay to exchange passwords with relatives and friends. distant.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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