In Steubenville, Ohio some residents fear Frontier’s alleged neglect of their utility poles is putting people’s safety in jeopardy. WTOV reports that Frontier is attempting to “pass the buck” to Ohio taxpayers to keep trees and brush clear from their poles. (2:45)
In Wausau, Wis., one local woman is speaking out about Frontier’s dismal performance as she passes nine weeks without a working landline. Frontier is in no hurry to fix the problem. WAOW-TV reports. (2:24)
In West Virginia, thousands of complaints are rolling into the Public Service Commission regarding Frontier’s deteriorating phone and internet service. As the problems get worse, an ongoing state audit is documenting problems at Frontier as the state decides what it can do next. WCHS in Charleston reports that many West Virginians have only one choice for phone and internet service. (5:59)
Large media companies and streaming services are on to many of you.
If you are among the two-thirds of subscribers that have reportedly shared your Netflix, HBO GO, Hulu, or Disney+ password with friends and family, your provider probably already knows about it.
A recent report from HUB Entertainment Research found that at least 64% of 13-24-year-olds have shared a password to a streaming service with someone else, with 31% of consumers admitting they are sharing passwords with people outside of their home.
The reason many people share passwords is to save money on the cost of signing up for multiple streaming services. Many trade a Netflix password in return for a Hulu password, or hand over an HBO GO password in exchange for access to your Disney+ account. Research firm Park Associates claims that streamers lost an estimated $9.1 billion in revenue from password sharing, and can expect to lose nearly $12.5 billion by 2024 if password sharing is not curtailed.
Oddly, most streaming services are well aware of password sharing and the lost revenue that results from sharing accounts, and most care little, at least for now.
Marketplace notes a lot of the complaints about password sharing are coming from cable industry executives, shareholders, and Wall Street analysts, but for now most streaming services are just monitoring the situation instead of controlling it.
“I think we continue to monitor it,” said Gregory K. Peters, Netflix’s chief product officer, on the 2019 third quarter earnings call. “We’ll see those consumer-friendly ways to push on the edges of that, but I think we’ve got no big plans to announce at this point in time in terms of doing something differently there.”
Netflix sells different tiers of service that limit the number of concurrent streams to one, two, or four streams at a time. The company believes that if customers that share accounts bump into the stream limits, many will upgrade to a higher level of service which will result in more revenue.
Newcomer Disney+ not only recognizes password sharing is going on, it almost embraces it.
“We’re setting up a service that is very family friendly. We expect families to consume it,” Disney CEO Bob Iger said in an interview with CNBC. “We will be monitoring [password sharing] with the various tools that we have.”
The biggest tool Disney has to monitor account sharing is Charter Spectrum, which is aggressively encouraging streaming services to crack down hard on password sharing. Spectrum internet customers who watch Disney+ are now tracked by Spectrum, recording each IP address that accesses Disney+ content over Spectrum’s broadband service. When multiple people at different IP addresses access Disney+ content on a single account at the same time, Spectrum can flag those customers as potential password sharers.
Synamedia, a streaming provider security firm, uses geolocation tools to determine who is watching streaming services from where. If someone is watching one stream from one address and another person is watching from another city at the same time, password sharing is the likely culprit. For now, most companies are quietly collecting data to learn just how big a problem password sharing is and are not using that information to crack down on customers.
Streaming providers are more interested in stopping the pervasive sale of stolen account credentials on services like eBay and shutting down stolen accounts used to harvest content for unauthorized resale. But as sharing grows, so will calls from stakeholders to curtail the practice. Those in favor of vigorous crackdowns on password sharing argue billions of dollars of lost revenue will be lost. If a service like Netflix blocked password sharing, that could lead to dramatic increases in account sign-ups. But less established brands like Disney+ seem more concerned about losing the unofficial extra viewers that are watching and buzzing about shows on its new streaming platform.
Cable companies are frustrated about losing scores of cable TV customers to competitors that may be effectively giving away service for free. That has raised tempers at companies like Charter Communications.
“Pricing and lack of security continue to be the main problems contributing to the challenges of paid video growth,” Charter CEO Thomas Rutledge said in recent prepared remarks with Wall Street analysts. “The traditional bundle … is very expensive, and the actual unit rate of that product continues to rise, and that’s priced a lot of people out of the market. And it’s free to a lot of consumers who have friends with passwords. So our ability to sell that product is ultimately constrained by our relationship with content [companies], and we have to manage that in terms of the kinds of power that the content companies have.”
Charter’s power comes from its willingness to distribute cable networks like The Disney Channel to tens of millions of homes around the country. That forces Disney to listen to Charter’s concerns about piracy and password sharing and the issue is even documented in the latest carriage contract between the two companies.
Cable industry executives believe a crackdown on password sharing is inevitable, eventually. Just as the cable industry was forced to combat cable pirates during its formative years, streaming providers that welcome extra viewers today may lament the lost revenue those subscribers don’t bring to the table tomorrow.
Marketplace reports on the growing issue of streaming service password sharing. (2:19)
This Spectrum door-to-door salesperson tells a Bath, N.Y. customer the cable company bought the competition.
A Spectrum door-to-door sales representative has a new trick up his sleeve to win back customers who switched to a competitor: lie and tell them Spectrum bought out the competition and sooner or later customers will once again be dealing with the cable company.
Spectrum Rep: “To get you guys back on board with our service, we’re going to lock your price in for two years.”
A Bath, N.Y., customer of Empire Access, a competing fiber to the home provider offering service in the Southern Tier of New York: “I’m not interested.”
Spectrum Rep: “We just bought Empire, you know, so sooner or later you’re going to be with us.”
Customer: “So you’re going to raise up your rates?”
Spectrum Rep: “No, we’re just going to get everybody switched over, so whenever you’re ready. The official switchover is in March, so sooner or later you’ll be on board with us or you’ll be on satellite for internet. Right now we’re offering you a deal to get on board early.”
The “deal” was $50 a month for 100 Mbps internet, which is hardly a deal at all considering new Spectrum customers in competitive service areas can often sign up for 400 Mbps service for $29.99 a month for two years. More importantly, the salesperson openly lied to make a sale.
Empire Access marketing director Bob VanDelinder says Empire Access did not sell to Spectrum and has no plans to sell itself to anyone.
“Our company is locally owned and operated, and deeply rooted in the communities we serve,” VanDelinder said. “We can keep our customers based on our service, our price. We’re very competitive and play fair. We think that’s extremely important to play fair and keep it a level playing field and be honest to our customers.”
The customer captured most of the conversation on his Ring video doorbell and shared it with Empire Access. At least one other Empire Access customer said he experienced a similar encounter with the deceptive salesperson.
“The content of the video is not accurate and we’re investigating these apparent comments by the sales representative,” responds a Spectrum spokesperson.
Spectrum typically contracts out its door-to-door marketing to third party companies, with employees typically earning a commission or bonus based on each successful sign-up.
Empire Access is requesting customers who have experienced similar misleading claims to contact the company at: 1-800-338-3300.
WENY-TV in Elmira, N.Y. reports on a Spectrum door-to-door salesperson using dirty tricks to try and fool customers to switch back to the cable operator. (2:32)
Be Sure to Read Part One: Astroturf Overload — Broadband for America = One Giant Industry Front Group for an important introduction to what this super-sized industry front group is all about. Members of Broadband for America Red: A company or group actively engaging in anti-consumer lobbying, opposes Net Neutrality, supports Internet Overcharging, belongs to […]
Astroturf: One of the underhanded tactics increasingly being used by telecom companies is “Astroturf lobbying” – creating front groups that try to mimic true grassroots, but that are all about corporate money, not citizen power. Astroturf lobbying is hardly a new approach. Senator Lloyd Bentsen is credited with coining the term in the 1980s to […]
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