How streaming TV has become a free-for-almost everyone

http://www.theguardian.com/money/2015/jul/18/streaming-tv-sharing-subscriptions-stealing

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At a barbecue a few weeks ago, a group of friends and I got chatting about our plans for the weekend. It turned out that most of us had the same thing in mind: watching the season three premiere of Orange is the New Black on Netflix. The funny thing was, I was the only one shelling out any cash for an online subscription.

To watch the US prison drama, one couple planned to use their old flatmate’s subscription, while another would be using a work colleague’s account. What’s more, another friend admitted to using the login details of someone she had never even met.

They are not alone. Growing numbers of Britons are accessing video streaming services online, but research for Guardian Money by comparison website Broadband Genie found that a quarter of people questioned admitted to sharing login credentials with friends and others – and the numbers are likely to grow as streaming becomes more popular.

Related: Netflix CEO tells subscribers to brace for higher-priced plans in the future

Many people take the view that they are saving money by splitting the cost and sharing subscriptions with friends and family, the website says. Some are even getting involved in online communities that allow them to share access with complete strangers.

We hear a lot about the sharing economy, but at what point does sharing become stealing? Is it against the rules – or even illegal? Or is it one of those grey areas where the companies are either not bothered, or are effectively turning a blind eye to what’s happening?

According to the Broadband Genie survey, Netflix account owners are the most likely sharers, with a hefty 50% of users saying they use an account paid for by someone else. In the case of both Spotify and Amazon Prime, the equivalent figure was 13% of users, while for Now TV, Sky’s dish-free online streaming service, it was 10%.

This got me thinking about all of my own online paid-for accounts – Netflix, Amazon Prime, Hopster and Audible to name just a few – and whether I could, or should, slash my costs by sharing subscriptions.

If you are tempted to share logins, it’s important to check the provider’s terms and conditions. “Often there are stipulations around whom you can give access to, how many devices you can watch on at once, or whether others who watch have to be in the same household,” says Steve Nowottny, consumer and features editor at MoneySavingExpert. However, the sites arguably don’t always make clear what is and isn’t allowed. Some sharing could potentially violate the terms and conditions, but the language used in those agreements can be ambiguous to say the least, with little mention of repercussions.

Netflix has three levels of service that allow you to watch either one, two or four screens at the same time, and the streaming giant is unique among its rivals in supporting different user profiles which track distinct viewing histories and give different recommendations. This seems unnecessary unless more than one person uses the same account.

The Netflix small print states that “the account owner’s control is exercised through use of the account owner’s password, and therefore to maintain exclusive control, the account owner should not reveal the password to anyone”. Depending on how you read that, it arguably doesn’t suggest that someone will get into trouble with Netflix for disclosing their password to a third party. I had an online chat with a Netflix helpdesk employee called “Hutch” who assured me that sharing was allowed. He said: “Yeah, you absolutely can! The only limit is dependent on your plan.”

Why commit to an annual subscription to watch the final season of Mad Men when you can use your friend’s login for free?

With Amazon Prime you pay a one-off fee of £79 for a year of free delivery on goods, access to the Kindle owners’ lending library, and unlimited instant streaming of thousands of movies and TV shows. In the usage rules on its website it says: “You may stream up to two videos at the same time using the same Amazon.co.uk account. You may stream the same video to no more than one device at a time.” It adds: “Amazon Prime members can share their delivery benefits with up to four invited guests [which appears to mean family members] living at the same address. They can also share delivery benefits, Prime instant video streaming and Kindle owners’ lending library books with one adult member of their Amazon household.”

The company says an “Amazon household” can contain up to six members: two adults, each with their own account, and up to four children.

Now TV charges £6.99 a month for its Entertainment package, which enables customers to view 13 pay-TV channels not on Freeview, such as Sky Atlantic, and scores of box sets. It says you can “register up to four compatible devices and watch on two at the same time”. The small print says that “in the future we may allow you to nominate ‘additional users’ – ie, other members of your household who are authorised to use your account,” and adds that “in order that you and we can control the access of your additional users, they’ll have their own login details and password”.

So are companies taking action to cut down on the sharing of accounts? It would seem not. The streaming services aren’t looking the other way by accident, claims Chris Hill, partner at technology and digital media law firm Kemp Little. “In general, if a service provider makes its money through providing access to something, the rules they set when you sign up will prohibit anything which damages that business model,” he says.

If executives felt like taking legal action, they might in theory start pursuing violators for breach of contract, or the owners of the copyright of the material could also sue for infringement of copyright. Hill says: “In the most serious cases it is possible for criminal proceedings to be brought, but in the context of sharing access this is not likely to happen unless the sharing is on a fairly industrial scale or is being carried out for commercial gain.”

If you think about it, the situation could become a problem for cable TV providers long before streaming services have much reason to worry. If you can get great TV and movies free, you might be tempted to drop your entire cable TV package. After all, some might say why commit to an annual subscription in order to watch the final season of Mad Men when you can simply use your friend’s login for free?

If sharing a streaming account sounds like something you would want to steer well clear of, it is still possible to view online content without breaking the bank.

“For many people it will be easier to just sign up for their own separate account,” Nowottny says. “Many of the big online streaming sites often offer free trials, so you can enjoy months of free movies and TV without paying a penny, totally legally.

“Simply sign up for a free 30-day or month-long trial, make the most of it and, crucially, remember to cancel the subscription before the direct debit kicks in – then try out a different one when your free trial is up.”