Home » Hulu » Recent Articles:

Streaming Services Are Monitoring Customers for Signs of Password Sharing

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)

Hulu + Live TV Hiking Rates $10/Mo; Most Customers Will Pay $55 a Month for Live TV Streaming

Phillip Dampier November 18, 2019 Competition, Consumer News, Hulu, Online Video 1 Comment

Hulu + Live TV is celebrating its successful signup of over an estimated 2.7 million customers with a major rate increase the company says reflects the service’s true value in the marketplace.

Most customers will see their subscription price increase by $10 a month, from $45 to $55 a month.

“Today, we’re letting customers know that the monthly base price of Hulu + Live TV will increase to $54.99, beginning December 18,” the company wrote in a blog post. “The new price better reflects the substantial value of Hulu + Live TV and allows us to continue offering all of the popular live news, sports and entertainment programming included in the plan.”

Craig Moffett, a chief analyst at MoffettNathanson, told readers of his Cord Cutting Monitor quarterly newsletter that Hulu + Live TV, which combines Hulu’s on demand plan with a selection of about 60 streaming live TV networks, is likely America’s largest cable TV replacement service, topping Sling TV’s estimated 2.686 million customers.

Moffett also reported that cord cutting is becoming a more costly proposition.

“Eighteen months ago, the cheapest video packages for vMVPDs were clustered around $30 to $35 per month,” Moffett wrote. “Eighteen months later, most are in the $45 to $50 per month range, an increase of roughly 50%.”

Netflix Rivals Claim It Will Eventually Have to Bow to Advertising

Phillip Dampier June 25, 2019 Competition, Consumer News, Hulu, Netflix, Online Video No Comments

As some Netflix shareholders grumble about the company’s massive investment in developing original content, some of Netflix’s smaller rivals claim the streaming service cannot forever depend on subscription fees alone to cover the billions being spent on new series and movies.

NBCUniversal’s Linda Yaccarino and Hulu’s Peter Naylor both believe Netflix will eventually have to begin inserting advertising into shows if it wishes to continue its spending spree on content while avoiding steep rate increases.

At a Cannes Lions panel held last week, content companies discussed the evolution of streaming services and their embrace of traditional advertising.

“When you have to make more programming that’s not guaranteed to be a hit, you have to spend more money, you have to build your brand, you have to help the consumer discover your stuff — the price will go up for the subscription, and it would be logical to mitigate those increases to take ads,” Yaccarino said.

Hulu remains the biggest and best-known example of a streaming service built on a traditional advertising model. Customers pay $5.99 a month for advertiser-sponsored content, similar to traditional linear television. Customers can buy their way out of advertising interruptions by paying $11.99 a month for a commercial-free plan that is roughly double the usual price. Just under 30% of Hulu subscribers currently select the commercial-free option.

Hulu’s bathroom break ad, displayed when a video is paused.

Naylor claims traditional advertising need not continue to resemble commercial broadcast television, despite the fact Hulu is still mimicking that experience.

“The future of ad-supported media does not resemble what we’re doing today in terms of ad load or even ad shape,” Naylor said. “It can be interactive advertising or nonintrusive advertising. I think you’re going to see a lot of innovation from all of these new OTT providers because we’re allowed to. We’re not married to the clock. Fifteen and 30-second ads were a product of linear TV. When everything’s on demand and served through an IP address, the ad experience is going to dramatically improve.”

Hulu has been experimenting with different ad formats to gauge subscriber acceptance. Interactive advertising, viewer-selected ads, and banner ads that appear when programming is paused are all being tested.

Although Hulu is dabbling in original content, NBCUniversal spent more than $28 billion on content acquisition and development last year. In contrast, Netflix spent $12 billion. Yaccarino said that as more streaming services launch, particularly those from Disney and WarnerMedia, Netflix will have to further increase its spending to keep up.

A Netflix spokesperson told CNBC all this talk was “wishful thinking from an advertising conference.” Netflix is not currently focused on incorporating ads into any of its shows, the spokesperson confirmed.

Hulu… by Disney; Comcast Becomes Passive Partner in Streaming Service

Effective today, Hulu is now under the full control of the Walt Disney Company, ending a decade of a sometimes-uneasy partnership between rivals NBC-Universal, 21st Century Fox, Disney-ABC and Time Warner (Entertainment).

This morning, Disney and Comcast, the last two partners in the streaming venture, reached an agreement that will give full operational control of Hulu to Disney, in return for either company having the right to force Disney to buy out Comcast’s remaining 33% interest in the service beginning in 2024. In effect, with Comcast giving up its three seats on Hulu’s board and its veto power, the cable company now becomes a passive partner in the venture. At a Disney-guaranteed value of at least $27.5 billion five years from now, Comcast could eventually walk away from Hulu with at least $9 billion in compensation.

Today’s agreement means Disney will own and control multiple streaming services. Disney today announced it has big plans for Hulu, despite preparing to launch its own Disney+ streaming service and already operating its own streaming platform for ESPN. Disney CEO Robert Iger said Disney+ will now be focused on kids and family-friendly entertainment, while Hulu will be Disney’s platform for adult-focused movies and series. Disney’s recent acquisition of the 20th Century Fox content library and FX’s suite of cable channels gives it plenty of additional content to bring to both of its general entertainment streaming services.

To make sure of a smooth transition, both companies have agreed to a lucrative extension of Hulu’s license to stream NBC-Universal content and networks, as well as a retransmission consent agreement to allow Hulu Live to continue carrying NBC-Universal networks and TV channels until the end of 2024. That will deliver a significant revenue boost to Comcast, which can use the money to help build its own forthcoming streaming platform, launching in 2020.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” said Iger in a statement.

NBC-Universal chief executive Steve Burke said in a statement that the deal is “a perfect outcome for us” because the “extension of the content-licensing agreement will generate significant cash flow for us, while giving us maximum flexibility to program and distribute to our own direct-to-consumer platform.”

For consumers, Iger is expected to consider offering a discounted bundled package to Hulu subscribers who also sign up for Disney+. With a combination of Hulu and Disney+, Netflix’s biggest U.S. rival is about to get considerably bigger.

Hulu Readies Refreshed Interface, Limited Ad Breaks to Strengthen Subscriber Loyalty

Phillip Dampier May 1, 2019 Competition, Consumer News, Hulu, Online Video No Comments

Hulu, unlike its bigger rival Netflix, still depends on commercials for a substantial part of its income, and on Wednesday put on a presentation for advertisers hoping to maintain their interest in sponsoring the platform as it undergoes ownership and design changes.

Hulu announced it now has 26.8 million paid subscribers, and an additional 1.3 million free promotional accounts (many through a partnership with Spotify), totalling over 28 million customers overall. That is an increase of roughly three million since January.

Hulu is still a fraction of the size of its rival Netflix, which has 60.2 million U.S. subscribers and 148.8 million overall worldwide.

The past 12 months have been disruptive for Hulu because of ownership changes. Disney inherited an additional 30% ownership stake from its acquisition of Fox and bought out minority partner AT&T, which itself had acquired a 10% interest in Hulu when it merged with Time Warner (Entertainment). As of this month, Disney controls 67% of Hulu, with Comcast-NBC owning the remaining 33%. Comcast-NBC is said to be looking to sell its minority stake in Hulu, presumably to Disney, giving the owner of ABC and ESPN full ownership.

At the same time, Disney is working towards launching its own streaming platform, Disney+, this November, leading some to wonder what will become of Hulu. The answer came today — both platforms will continue, with an undisclosed price break for those agreeing to subscribe to both Disney+ and Hulu.

Originally a partnership between three of the four major American TV networks, Hulu was the original home for online streaming of current network TV shows. But as those networks drift apart to run their own ventures, Hulu appears to be investing in more original programming to hold viewer interest, but remaining open to advertising — a smaller Netflix with ads.

With so many new streaming services launching, Hulu is positioning itself to reduce customer alienation and try to increase subscriber engagement.

Subscribers will be gently introduced to a new user interface by this summer, with the option of switching back and forth during the test phase, to improve usability.

Peter Naylow, Hulu’s senior vice president and head of ad sales, also announced advertising limits and changes, including:

  • No ad breaks over 90 seconds
  • Viewers will not see the same ad more than twice per hour
  • The same ad will not be seen by viewers more than four times per day
  • Advertisers can sponsor ad-free viewing of individual episodes
  • Binge viewers may see personalized special offers from sponsors
  • Easter Eggs will be scattered on the platform, offering viewers obviously fake shows that, if selected, activate special offers from Hulu and “brand partners.”
  • Static ads will appear when viewers pause playback.

For $11.99/month, subscribers can continue to avoid all advertising on the Hulu platform entirely.

New original shows

To maintain viewer interest, Hulu’s partnership with Marvel will give subscribers two new live-action shows: “Marvel’s Ghost Rider” and “Marvel’s Helstrom,” scheduled to debut in 2020. Other Marvel productions will be found on Disney+ (which will cost $6.99 a month or $69.99 a year).

Other productions:

  • A new slate of cooking shows
  • Made-for-Hulu movies based on Liane Moriarty’s “Nine Perfect Strangers” and “The Dropout” — the story of Elizabeth Holmes, the founder of Theranos, starring Kate McKinnon.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!