The video streaming industry has experienced tremendous growth in recent years, with billions of dollars in revenue generated by the on-demand business model. However, this growth has not come without challenges. Increased streaming costs have driven some users to turn to pirate sites and hacked accounts, leading to legal consequences for resellers.
When Netflix first launched its streaming services, it positioned itself as a competitor to piracy. Many casual pirates were drawn to streaming platforms as a legal alternative. But as more streaming services entered the market, the focus shifted from broad content selections to exclusive releases, making it difficult for users to afford all the services they want.
Ironically, this affordability issue has pushed some users back towards illegal options. Hacked accounts belonging to third-party customers are being sold on various websites, offering cheap access to streaming services like HBO Max, Paramount+, and Viaplay. These accounts are likely obtained through data leaks, which allow hackers to hijack streaming accounts using the same credentials used across multiple sites.
Recently, the Danish National Unit for Special Crime (NSK) announced the charging of a 29-year-old man for illegally reselling 500,000 leaked login credentials. This individual now faces potential prison time for his actions. It is not the first time someone has been caught reselling login credentials, as another individual was previously arrested for a similar offense.
The Danish Rights Alliance commends the police action and highlights the constant development of new models used by criminals to profit from illegally providing content. These criminals are able to operate successfully because consumers are eager to save on streaming subscription costs. While enforcement actions like these may deter some criminals, they do not solve the underlying problem.
Interestingly, several major streaming services, including Netflix, HBO, and Disney, have recently formed the Streaming Innovation Alliance (SIA) with a focus on affordability. A survey conducted by SIA revealed that over half of consumers consider streaming services too expensive, with cost being highly important to 75% of them.
However, the Alliance states that their goal is not to make services cheaper. Instead, they seek to combat taxes and costly regulations that could potentially increase the cost of streaming services. While these efforts are commendable, they do not directly address affordability as a driver for piracy.
Ultimately, consumers resort to illegal options like piracy and cheap hacked accounts because they find streaming services to be unaffordable. The Streaming Innovation Alliance could potentially be a great platform to explore creative bundling solutions and find ways to address cost concerns in other ways.
It is clear that the issue of streaming affordability needs to be addressed by all stakeholders in the industry. Balancing the need for profit with the desire for reasonable prices will be crucial in capturing and retaining a larger audience in the future.
