With the consistent spike in streaming services such as Netflix, Amazon Prime Video, and Disney+, subscription-based billing has become increasingly popular in recent years. These services offer users access to a vast library of movies, TV shows, and other content for a monthly fee. However, subscription-based services have also faced a challenge: password sharing. In this blog post, we shall discover the impact of password sharing on over-the-top (OTT) streaming and how OTT subscription billing platforms can help address this issue.
Password Sharing: What is it?
Password sharing is the practice of sharing login information with friends or family members, allowing them to access the content on a subscription-based service without paying for it themselves. While sharing passwords is often seen as a harmless practice, it can have a significant impact on subscription-based services, particularly those in the OTT streaming space.
The Impact of Password Sharing on OTT Streaming
Loss of Revenue
Password sharing can have several negative impacts on OTT streaming services. First and foremost, it can lead to a loss of revenue. When users divulge their login information with others, they effectively allow them to access the service for free, reducing the number of paying subscribers. This can be particularly problematic for newer streaming services that are still trying to establish themselves in a crowded market.
Difficult Demographic Measurement
Additionally, password sharing can make it difficult for streaming services to accurately measure their audience size and demographics. When multiple people are using the same login, it can be challenging to determine who is actually watching a particular show or movie. This can make it difficult for streaming services to make informed decisions about what content to produce and how to market it.
Sub-par User Experience
Finally, password sharing can also impact the user experience. When multiple people are using the same login, it can lead to slower streaming speeds, buffering, and other issues. This can be frustrating for paying subscribers who expect a high-quality streaming experience.
How Can Subscription Billing Platforms Help Address Password Sharing?
Multi-device Login Tracking
Recurring billing platforms offer several tools and features that can help streaming services address the issue of password sharing. One such tool is multi-device login tracking. This feature allows streaming services to track the number of devices that are using a particular login. If the number of devices exceeds a certain threshold, the service can prompt the user to upgrade to the next tier of service or require them to log out of other devices before logging in on a new one.
IP Address Tracking
Another feature offered by OTT subscription billing platforms is IP address tracking. This feature allows streaming services to track the IP addresses that are accessing their content. If multiple IP addresses are accessing the same login, it could be an indication of password sharing. The service can then prompt the user to upgrade their account or require them to provide additional verification information, such as a phone number or email address.
Some OTT subscription billing platforms also offer geo-restriction capabilities. This feature allows streaming services to restrict access to their content based on the user’s location. By limiting access to users in specific geographic regions, services can reduce the likelihood of password sharing among users in different parts of the world.
In a Nutshell
In conclusion, password sharing can have a significant impact on OTT streaming services. It can lead to a loss of revenue, make it difficult to measure audience size and demographics and negatively impact the user experience. Subscription billing platforms offer several tools and features that can help streaming services address the issue of password sharing. By implementing these tools, services can reduce the likelihood of password sharing and ensure that they are providing a high-quality streaming experience for their paying subscribers.
Magnaquest’s SURE subscription billing platform provides a robust and scalable solution for companies looking to offer a seamless customer experience while ensuring maximum security and analytics features. If you are interested in learning more, our experts are available to provide a short demo and discuss how SURE can benefit your business. Contact us today to get started.