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PASSWORD SHARING: CHALLENGES AND OPPORTUNITIES FOR OTT VIDEO PROVIDERS

Posted by Gaurav Mittal | Jun 29, 2023 | Video Entertainment



In an era dominated by online streaming and video consumption, Over-The-Top
(OTT) services have emerged as the go-to choice for entertainment. In 2022, the
number of people using OTT platforms was 3.26 billion and by the end of 2023,
the number is predicted to grow up to staggering 3.8 billion!

As the popularity of OTT services rises, three critical factors have become the
cornerstones of success for these platforms: secure distribution, guaranteed
premium user experience and attractive monetization models. However, a big
challenge has been on the horizon for a while now – password sharing.


WHAT IS PASSWORD SHARING?

Password sharing – a common practice among users – allows individuals to share
their login credentials with friends, family or even strangers. It offers
convenience, making it easier for people to access content and allows for
cost-sharing, making subscriptions more affordable. Additionally, password
sharing allows users to explore different libraries without subscribing to
multiple services.

However, it’s important to be cautious about sharing passwords with strangers to
avoid compromising security. While it may seem harmless, widespread password
sharing presents significant challenges for video streaming companies.


WHAT CHALLENGES DOES PASSWORD SHARING POSE TO OTT VIDEO PROVIDERS?

One of the challenges is revenue loss. When the number of subscribers decreases
due to password sharing, the companies experience a direct loss in income. As a
result, their bottom line is negatively affected, potentially hindering their
ability to invest in improving the platform or deliver quality content.

Another challenge is increased costs, as a result of higher infrastructure
utilization. This unpredicted usage surge happens when operators need to serve a
higher number of users that are not registered subscribers. Providers carefully
assess the performance of their platforms to cater to a specific number of
subscribers, however, when individuals share their passwords, the number of
concurrent users multiplies, exceeding the predicted capacity of the platform.

As a result, OTT video providers find themselves unable to support this influx,
leading to a range of issues such as slow buffering, blackouts and other
frustrating interruptions. The surge in concurrent users strains the resources
of the streaming service, including server capacity, bandwidth and other
essential components.

Having recognized the significance of this issue for OTT video providers, it is
crucial to emphasize that there exists a key challenge in addressing it, as it
poses the risk of displeasing subscribers who may perceive it as a restriction
on their freedom or an escalation in costs.


WHY IS TRANSPARENT COMMUNICATION KEY, WHEN DISCOURAGING PASSWORD SHARING?

Addressing the topic of password sharing can be challenging due to customer
frustration and the risk of subscriber churn. Additionally, concerns about
increased costs and a perceived loss of freedom further complicate the issue.
When companies deal with any kind of shift, clear communication with subscribers
is vital.

In this case, it is essential to explain the reasons behind discouraging
password sharing and the benefits it brings to both the company and the users.
By fostering transparency and trust, video streaming companies can navigate the
sensitive topic without alienating their customer base.


CAN PASSWORD SHARING CHALLENGES BE OPPORTUNITIES?

Challenges often come with hidden opportunities and discouraging password
sharing is no exception. While it may initially appear as a threat to the status
quo, embracing this challenge opens doors to innovation and growth. By taking
proactive measures, video streaming companies can use this opportunity to
improve their business, enhance user experience and create new monetization
avenues.

When implementing concurrent stream management solutions, companies can ensure
that their services are not abused, preventing unauthorized access and
protecting the integrity of their content offerings. This approach strikes a
balance between preventing excessive sharing and maintaining a positive user
experience, which is crucial for the long-term success of any OTT service.

OTT video providers can capitalize discouraging password sharing by introducing
more personalized and user-friendly plans, creating the opportunity for
investment in technological advancements to improve streaming capabilities,
ensuring faster streaming and steady playback. These investments ultimately
benefit all subscribers, providing them with a superior streaming experience
that keeps them engaged and loyal to the service.


WHY IS DISCOURAGING PASSWORD SHARING A WIN-WIN PROPOSITION FOR OTT PROVIDERS AND
SUBSCRIBERS?

Discouraging password sharing could be a win-win proposition for both OTT video
providers and subscribers, with some of the benefits being:

 1. Affordability: Reduces entry barrier for the service making it more
    affordable for end user and thereby motivating people to subscribe to get
    full experience.
 2. Improved user experience: Allows OTT video providers to better assess the
    infrastructure needs of the platform while aligning the user experience to
    the needs of the specific viewer, including hyper-localization, access to
    early releases etc.
 3. Better targeted advertisements: Increasing the relevance of advertisement
    for end user and better utilization and monetization of ad inventory for an
    operator.


HOW CAN YOU OVERCOME THE CHALLENGES OF PASSWORD SHARING?

If you want to tackle password sharing and unlock the full potential of your OTT
platform, we are here to help. Irdeto Control is the most reliable, scalable and
secure multi-DRM solution proven in the market. It empowers your OTT video
service with simple integration, management, and global support
“round-the-clock”, providing you the differentiation you need to stand out,
offer your viewers an unmatched user experience and grow your business by
attracting more subscribers.

For more information on Irdeto Control get in touch with us today.

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ABOUT THE AUTHOR

GAURAV MITTAL

Gaurav is currently a Product Manager at Irdeto and is responsible for the
multi-DRM product, Irdeto Control, He has extensive experience in the
introduction of new technologies in the digitalization of TV, HD and UHD, as
well as large broadcast OTT deployments. Gaurav has over 18 years of experience
working for technology providers such as ST Microelectronics, Cisco, V-Nova and
supporting operators as media companies globally, including Liberty Global,
Foxtel, TataPlay and Sky UK. Originally from India, Gaurav also holds a few
patents in the field of OTT content delivery and LCEVC (MPEG-5).


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