New Software is Looking to Crack Down on Netflix and Hulu Password Sharing

Not everyone who binge-watches Stranger Things is paying for the privilege. In 2017, a Reuters/Ipsos poll found that 21 percent of streaming service viewers aged 18 to 24 accessed a service like Netflix, Hulu, or HBO Go using someone else’s account and password.

Thanks to a combination of technology and an appetite for subscriber growth, you might be forced into a Netflix password reset.

At the Consumer Electronics Show in Las Vegas this week, UK-based technology company Synamedia announced a software program that uses artificial intelligence to track account activity for streaming subscriptions. If login behavior is atypical—for example, an account sign-in at another home with substantially different tastes in content—the account can be flagged for review. The content provider would then have the choice of offering the user an account upgrade allowing for multiple users or disallowing the sharing activity.

Synamedia is banking on the idea that popular streaming services like Netflix and Amazon Prime might be interested in the technology, though past comments by executives have indicated the opposite—the companies find account sharing, even outside the household, to be an effective form of advertising.

“We love people sharing Netflix,” CEO Reed Hastings said in 2017. “That’s a positive thing, not a negative thing.”

What could change their tune? If new subscriber growth slows down. Industry analysts believe any significant drop in new account sign-ups could prompt investors to urge streaming companies to curtail sharing. That may become more of an issue as more of these content providers crop up, inching closer toward a monthly billing amount that users may compare unfavorably to expensive cable packages. If you pay for three services, you might be more tempted to borrow the password for the fourth.

Netflix has yet to comment on Synamedia’s efforts.