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Cable TV's Password-Sharing Crackdown Is Coming (bloomberg.com)

Charter Communications' CEO, Tom Rutledge, is leading an industrywide effort to crack down on password sharing. It's a growing problem that could cost pay-TV companies millions of subscribers -- and billions of dollars in revenue -- when they can least afford it. Bloomberg reports: Cable and satellite carriers in North America have lost 3 million customers this year alone. But the prevalence of password sharing suggests many of those customers, and possibly many more, are watching popular shows like "The Walking Dead" for free, robbing pay-TV providers and programmers of paying subscribers and advertising dollars. Most pay-TV companies only require users to re-enter their passwords for each device once a year. During contract negotiations this fall, Charter urged Viacom Inc., home of Comedy Central and MTV, to help limit illicit password swapping. The cable company wants programmers to restrict the number of concurrent streams on their apps and force legitimate subscribers to log in more often, according to two people familiar with the matter who asked not to be identified discussing private deliberations. ESPN, meanwhile, has reduced the number of simultaneous streams that it allows on its app to five from 10 and is considering cutting that to three, Connolly said. ESPN wants to work more closely with distributors to validate subscribers when there are high volumes of streaming on its app outside the cable company's territory.

24 of 143 comments (clear)

  1. Thanks for pushing me back to reading! by Anonymous Coward · · Score: 4, Insightful

    With every passing year it becomes more of a pain in the ass and more expensive to "consume content". I cut the cord almost ten years ago and now only pay for my DSL connection and Netflix. I would never in a million years pay for multiple streaming packages and/or cable tv or satellite tv.
    Never...

    If anything, this amalgamation of absolute fucking crap that continues to roll downhill, masquerading as the current content consumption paradigm, has me watching less "tv" and reading more.

    Thanks!

  2. Re:So what the article says is by Anonymous Coward · · Score: 4, Insightful

    We need a law to prohibit all terms in a contract not specifically related to the acquisition and distribution of said content. Problem solved. How many times a app requires someone to reauthorize really? I would assume they were talking Netflix...

    Why the hell is this a problem for government to solve?

    WTF do you want? The fucking logon police?

    Talk about overweening statism...

    If a company wants to charge for their content, let them figure out how to prevent users from sharing logins.

  3. Brilliant strategy by Anonymous Coward · · Score: 5, Funny

    I'm sure all of those millennials sharing their parents' passwords will immediately sign up for cable as soon as the restrictions take effect.

    1. Re:Brilliant strategy by Ranbot · · Score: 2

      I'm sure all of those millennials sharing their parents' passwords will immediately sign up for cable as soon as the restrictions take effect.

      It's short-sighted to say that none of them would get their own cable TV accounts. It's also possible they might sign-up for streams directly from networks like ESPN, HBO, AMC, etc., benefitting the networks and bypassing traditional cable TV.

      But, it could go the other generational way too. My wife and I* have Netflix with 4 four device log-ins, but we only use 2, so we gave our respective baby-boomer parents each a device log-in. We helped our parents see the benefit of using a streaming service. If Netflix cracked down and we couldn't give our parents those device anymore, then it's very likely our parents would sign up on their own, but until then we're all happy with the arrangement.

      * - We are between GenX and Millenial... both born in 1980. Make whatever assumption you want. It will not change the reality.

    2. Re:Brilliant strategy by farble1670 · · Score: 2, Interesting

      * - We are between GenX and Millenial... both born in 1980. Make whatever assumption you want. It will not change the reality.

      What reality? That you are illegally sharing accounts?

      You may have some naive fantasy that you are "sticking it to the man" You aren't. When you share your account, it increases traffic and keeps cash flow to Netflix the same. What do you think happens? Do you think Netflix says "oh well, less profit for us!". No, they raise prices. So basically your logic is I'll steal what amounts to an entire subscription, but the associated loss will be spread over the entire subscriber base. Win for you!

      If you need help deciding if your actions are moral, just ask yourself what would happen if everyone did this. Well, Netflix would go out of business, or the subscriptions prices would double or triple. It's all good as long as it's only you scamming the system though right? After all, grab what you can in life.

    3. Re:Brilliant strategy by Ranbot · · Score: 3, Insightful

      Nope. I don't have a "naive fantasy" that I am "sticking it to the man," that's just your strawman argument. I have no problems at all being part of a normal market economy. I am paying Netflix for 4 streams whether I use them or someone else does. No other rationalization is needed. A streaming service is able to reduce the number of available streams to subscribers and/or put better restrictions in place on sharing as they feel it is necessary. It's no different than a software company choosing whether or not to put DRM on their software or telecoms restricting tethering, they are weighing profits vs satisfaction of customers. If Netflix changes things so my wife and I can't share as easily, then us and our respective parents will decide how we all want to spend our money, like people in a normal market economy do. Coincidentally the original article is about networks wanting to reduce number of streams to try to get more subscribers. So, a real life example of what is described in the article [and the icing on the cake is contrary to popular generational stereotypes it's the baby boomer generation parents coasting on their children.]

  4. Didn't Netflix solve this? by networkBoy · · Score: 5, Insightful

    $n.nn for two screens $n.nn + $5 or so for 4 screens.
    Seems pretty dang simple to me.
    Rather than trying to police the mess that is "is this a shared PWD or is this a mobile user or is this a legit user that moved their cable box for the night?" they just limit concurrent streams to whatever you've paid for.

    --
    whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    1. Re:Didn't Netflix solve this? by Anubis+IV · · Score: 5, Interesting

      Netflix has been pretty awesome about this stuff for years, in fact. Prior to the current plans (i.e. back when they didn’t have profiles and only offered two screens), Netflix used to state in their terms that each account was “per household”, and then they had a generous definition for “household” that made it applicable to everyone from unrelated roommates living together to college students away at school. And they were really smart when they added multiple profiles per account, since they all share a single login, including access to billing details, which acts as a natural disincentive against sharing your account too far and wide.

  5. Re:Good by Anonymous Coward · · Score: 2, Interesting

    If everyone paid for their own share, those of us who are honest wouldnâ(TM)t have to pay extra to subsidize the free loaders. I canâ(TM)t wait til everything is a la carte also, so I can pay for a particular NFL game or ESPN in general without subsidizing shit like PBS or CSPAN

    The way things are going at ESPN, PBS and CSPAN are going to be subsidizing ESPN.

    Dunno if you caught pics of NFL stadiums lately, but lots of fans are showing up disguised as empty seats.

    The networks and the NFL have an obvious vested interest in not showing that, but even in last Sundays Steelers-Patriots game (probably the two best teams in the NFL right now, that had huge playoff seeding implications), I caught one aerial view that for a few short seconds showed a shitload of empty seats. The network cut to another view pretty fast...

    NFL empty seat images

  6. To paraphrase Princess Leia by Yaztromo · · Score: 5, Insightful

    The more you tighten your grip cable companies, the more customers will slip through your fingers.

    Yaz

  7. Solution: DVD rental by Anonymous Coward · · Score: 4, Insightful

    Netflix DVD catalog is VASTLY bigger than the streaming catalog. It has almost every movie ever made. In addition, you can rent a DVD, watch it, sneakernet it over to your buddy, who watches it. Then post it back to netflix. No password needed.

    The only significant drawback is that you might have to wait a few months for the newest TV series to appear on DVD - unless you can pick them up on broadcast. Just think of it like if they had come out a few months later. In some ways that is nicer, because you can binge them if you want without waiting a week between eps.

  8. That's funny by IWantMoreSpamPlease · · Score: 4, Funny

    >>...when they can least afford it

    Go on, tell me another one!

    --
    So rise up, all ye lost ones, as one, we'll claw the clouds.
  9. Smart move in Russia by TimothyHollins · · Score: 4, Insightful

    Sounds like cable is about to shoot itself in the foot.

    Meanwhile, Netflix doesn't complain about shared passwords, even allows users to set up multiple profiles on each account so it's easier to share.
    I hope netflix has enough bandwidth to absorb all the new customers that are about to join up.

  10. Take a cue from Apple / Adobe by SoulMaster · · Score: 5, Interesting

    Just limit it by MAC to a certain # of devices, and let the user delete devices from time to time. Apple does this already, so does Adobe CC, and Google Music. It's not that hard.

    The whining is coming not from the content providers, but from the cable companies, because they're the obsolete ones getting screwed. Viacom doesn't care because the more streams there are (regardless of shared login) the more $ they get to charge advertisers on OTT.

    It's simple math: a+b = cable companies just need to die already.

    -SM

  11. More Often? by blackfeltfedora · · Score: 4, Interesting

    It seems like I'm being asked to log into my Roku apps on a monthly basis already, how much more do they want?

  12. Re:Is this really an issue? by tylersoze · · Score: 3

    I use my parents' cable account password to access streaming apps on my Apple TV for the providers that require a cable password after we cut the cord. I'd gladly *pay* individual providers for streaming instead if they provided it rather this stupid cable password requirement.

  13. First Cox starts doing bandwidth caps by rsilvergun · · Score: 4, Insightful

    with overage charges and now this. It's funny that they had 8 years to do these things and restrained themselves and for some reason in the last year or so they've gotten a lot bolder. I wonder if something happened about a year ago to change their outlook on customer service and how much they can get away with...

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  14. Cable TV's attempt to boost Netflix subs is coming by nctritech · · Score: 5, Funny

    "Cable TV's attempt to boost Netflix subs is coming" - corrected headline

  15. Re:Good by murdocj · · Score: 2

    You are taking the "content" as a given. It's not. The content doesn't materialize of its own accord from the vacuum. Someone produces it, and unless they are making art for art's sake, they have an expected return.

  16. Re:So what the article says is by omnichad · · Score: 2

    The device MAC address gets registered with the ISP/TV provider as "allowed"

    The device's MAC address is invisible after the first hop. Unless you are saying that the device reports it over its own private channel. But then you would just use a device where you can easily spoof a MAC address.

    Now if the device had to check in from the home Internet connection every 30 days to get an authorization token, that would be almost reasonable.

  17. Re:Hahaha no. by gfxguy · · Score: 3, Insightful

    I won't buy the disc. I won't pirate it, either, but when AMC makes $1.40 per subscriber that can DVR every show on AMC, paying $25.00 for a season of The Walking Dead is absurd. Instead, they get nothing from me except what Netflix pays them, and I watch the full season when it becomes available there. I'm a patient person, and don't give a crap about spoilers, and I have plenty of other shows to watch in the meantime.

    --
    Stupid sexy Flanders.
  18. Re:Good by EETech1 · · Score: 2

    You can get PBS ala-antenna

  19. Re: So what the article says is by nitehawk214 · · Score: 4, Insightful

    Cable companies: "We need to government to protect us from our theiving customers." Also cable companies: "But government regulation is bad! We must end net neutrality!"

    --
    I'm a good cook. I'm a fantastic eater. - Steven Brust
  20. Least afford it?!? by zarmanto · · Score: 2

    ... It's a growing problem that could cost pay-TV companies millions of subscribers -- and billions of dollars in revenue -- when they can least afford it. ...

    My office mates are looking at me funny, because I quite literally laughed out loud when I read that.