FIRST AIRED: July 12, 2017

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Transcript

00:00:00
>> Streaming services like Netflix and Hulu are popular ways to watch television. But what we found is that a large number of people are watching these services without paying. I'm Lisa Richwine, correspondent for Reuters News and we've just had a poll to shot some like on how often this is happening.
00:00:16
21% of people admit to borrowing a password from somebody outside of their household to watch a streaming service like Netflix, Hulu, Amazon Prime or even a cable TV channel. For older people, the 25 to 34 age group, the number goes down a bit but it's still at 15%.
00:00:33
What some of the password sharers told us is that what they do, they get together with their friends, maybe a group of three people. One person pays for Hulu, one pays for Amazon, one pays for Netflix and then they share the accounts together. This is a sizeable chunk of people who are not paying for the service and this is really money that the media companies are leaving on the table.
00:00:54
If they could sign up these people to be paying customers, they could grow their revenue every month. They're willing to tolerate this for the time being, they believe it's a small number of people and they also think it is a good way to promote their content. At HBO, they talk about creating addicts who'll become addicted to their shows when they're borrowing a password and eventually sign up to be paying customers themselves.
00:01:16
So this is an issue the media companies are monitoring and will follow closely. At some point, they're going to have to decide, do we keep tolerating this or do we decide that we're gonna crack down.