Over the next five years, streaming services will lose hundreds of billions of dollars due to piracy and password sharing. Here are the three biggest reasons why the Streaming Media industry is hit so hard when it comes to viewers accessing content illegally and the solutions being used to combat them:
1. Subscriber fatigue
As the number of streaming platforms continues to grow, each offering exclusive content behind separate paywalls, consumers are becoming increasingly quick to hit that cancellation button. According to data from subscription research firm Antenna, one-quarter of U.S. streamers are chronic churners. And who can blame them? The accumulation of subscription fees, along with platform fragmentation, can quickly become unaffordable or simply frustrating.
Faced with mounting costs and subscription overload, many consumers are turning to piracy as a simpler, cost-free alternative that bypasses these barriers. By using illegal streaming sites or torrents, they can access content conveniently and at no cost, which directly undermines legal streaming services. This growing trend reflects the frustrations of consumers who feel burdened by the endless subscriptions and rising costs in an increasingly fragmented streaming landscape.
Solutions to Subscriber Fatigue
To reduce costs and the frustration of managing multiple subscriptions, some streaming companies have started bundling services with others. Another way to combat high cancellation rates is by improving content targeting to help users navigate the vast array of content options, which can lead to choice overload—a phenomenon that can cause decision fatigue and dissatisfaction among consumers.
Some streaming services have also opted for Freemium and Ad-supported models that allow consumers to use the service without committing to a subscription. The shift to ad-supported streaming brings challenges and opportunities for CDNs. Fluctuating traffic requires scalable, resilient infrastructure. Choosing the right CDN—such as Fastly—that meets the unique demands of streaming media is crucial to delivering the best possible viewer experience.
2. Gap Between Theatrical and Digital Releases
Piracy tends to thrive in the gap between theatrical and digital releases, as impatient viewers seek out unauthorized copies when legitimate options are unavailable. The longer the release window the more time pirates have to distribute high-quality copies before official versions are available, increasing the overall impact of piracy.
Solutions to the Release Gap
Releasing movies online earlier can help combat pirated content by shortening the window between a film's official release and its availability to consumers through legal channels. By reducing or eliminating this gap, studios can meet demand early, offering audiences convenient, legal access to films and dissuading them from turning to pirated versions.
Furthermore, early digital releases enable studios to implement enhanced security measures like digital rights management (DRM) and forensic watermarking, which can help track and prevent unauthorized copying.
The COVID-19 pandemic sped up this trend, as many studios chose simultaneous online and theatrical releases, resulting in a decrease in pirated versions due to widespread legal access. This model is increasingly being adopted as a strategy to combat piracy while meeting consumer demand for quick and flexible viewing options.
3. Rising Subscription Costs
High inflation rates mean consumers are struggling with rising costs of goods and services, making them more price-conscious. Many users view sharing their login details with friends and family as an easy and cost-effective way to access a wider variety of content without having to pay for additional services. Since streaming platforms typically allow multiple profiles under one account, it becomes easy to share access across households with little immediate consequence. Additionally, the lack of strict enforcement or easily bypassed measures makes password sharing feel like a harmless loophole rather than piracy. As more platforms introduce exclusive content and fragment the streaming market, users increasingly see password sharing as a solution to avoid paying for multiple services while still accessing the shows and movies they want.
Solutions to Higher Subscription Costs
Bundle deals—where viewers can access multiple streaming services under one subscription—can be an effective way to attract price-conscious consumers and secure longer subscriptions. Alternatively, offering viewers cheaper, lower-tier subscription models, ad-supported streaming, or freemium options can reduce costs for consumers.
When tackling password sharing, online streaming platforms need to find a careful balance when enforcing stricter policies to avoid driving customers away. While it is important to crack down on unauthorized account sharing to protect revenue, these platforms also recognize that overly harsh enforcement could frustrate paying customers. To mitigate potential backlash, many services are introducing gradual changes, such as offering affordable add-on options for sharing accounts with non-household members and providing clear communication about new policies. By combining stricter rules with flexible subscription plans and highlighting security benefits, these platforms aim to encourage compliance while maintaining customer goodwill.
Piracy and password sharing are just some of the many challenges facing the streaming industry. For a deeper dive into the cybersecurity challenges and opportunities in streaming media download our latest Streaming Media Industry Report.
