The days of sharing Netflix and Hulu passwords could soon be coming to a end.
At the annual CES convention in Las Vegas, software company Synamedia revealed its artificial intelligence tracker that helps streaming services find users who are sharing account information. The company is using AI to geo-locate users who could be sharing passwords. The technology analyzes whether one account is being used in multiple locations at the same time and flags the streaming service.
According to a report from CNBC, 35 percent of millennials share passwords, which could be causing streaming companies to miss out on millions of dollars. For Gen X and Baby Boomers, password sharing rates are estimated at 19 percent and 13, respectively.
CNBC also reported that Netflix announced it is increasing its prices by 13 to 18 percent. It is unclear whether the pricing has been impacted by product costs or users sharing passwords.
According to The Verge, the software is already being tested in a number of places and Synamedia’s CTO Jean-Marc Racine says the buzz around the technology shows how much the streaming world is changing:
“Racine notes that increased demand for Synamedia’s services is evidence that the new streaming video market is maturing. At the beginning of a service’s life, he says, companies don’t tend to care about password sharing since it’s an organic way to introduce new users to the service. “But after a while, there is a growing concern about piracy, and [companies] want to ensure they’re maximizing their revenue.’”
There’s no word on whether Netflix, Hulu or other streaming services will implement Synamedia’s technology; however, the it does highlight a growing problem for streaming companies wanting to increase their amount of paying customers.
