TECH

Streaming services lose millions with password sharing
Younger users of services like Hulu, Amazon and Netflix who share their keywords are costing millions of dollars a year in revenue for businesses, CNBC reports.According to a survey, 35% of millennials cede the passwords of their streaming services compared to 19% of Generation X subscribers (those born in the early 1960s to the early 1980s) and 13% of Baby Boomers.The so-called Generation Z, the post-millennial generation and the first generation of digital natives, are more likely to share their information with their friends than previous generations (42%).This translates into high losses from this technology business model, such as Hulu, which has been losing about $ 1.5 billion per year, according to a recent financial report.In 2016, Netflix CEO Reed Hastings said that sharing passwords "has not been a problem," however experts point out that this is a matter that is worsening, with millennials wanting ease of access and use, anytime.However, despite their losses, a marketing professor at Emory University in the US points out that there is a lack of willingness of companies to "police proper sharing" because it can function as a retention strategy."It's harder for users to cancel their signatures if they're shared with friends," he says.



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