Video streaming has grown into a multi-billion-dollar business. After years of domination by Netflix, Hulu, HBO, and Amazon Prime Video, media conglomerates including Disney, NBCUniversal, and WarnerMedia are entering the streaming wars too. The landscape of streaming will be very different in 2020, and it could end up costing the end user.
Both Disney+ and Apple TV+ launched in November of 2019. And by the middle of 2020, NBC will have launched Peacock, and WarnerMedia will be launching HBO Max. That's four new platforms in under a year, each with its own catologue of old favorites and new originals. In a market so demanding, something has to give—and it'll probably be our wallets.
According to estimates from Parks Associates, the US pay-TV industry is expected to lose $6.6 billion in 2019 to piracy and password sharing. While the existing industry and those soon to enter the fray can potentially weather this storm, it's only getting worse from here. By 2020, the industry will lose $7.1 billion, jumping to $8.1 billion in 2022 and then $9 billion in 2024.
It's hard to blame consumers for wanting these services for free. Streamers already feel like the field is far too bloated, with 75 percent stating they have no plans to subscribe to any new services. It's like the streaming industry has recreated the same TV packages it was supposed to save us from. Why pay for yet another streaming service when you can get the password from a friend and watch The Mandalorian on Disney+ for free?
Currently, 71 percent of US streaming users share their passwords with friends and family, and that's not likely to change anytime soon. It's an issue Netflix has known about for years, but so far, the company hasn't taken any actionable steps to prevent it. Instead, Netflix has moved in the opposite direction, allowing multiple users to create different profiles on the same account.
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But this consumer-friendly practice may not be something corporations such as Disney, NBC, and WarnerMedia are interested in continuing. Although Disney+ allows you to make separate profiles just like Netflix, the company came out of the gate swinging with the intention to crack down on password sharing before its service even launched.
The video-streaming industry is about to double in size just as consumers are ready to stop subscribing to additional services. This will make every dollar more valuable in the years ahead, so the projected losses are key. It probably won't be long before many streaming services put measures in place to prevent password-sharing. After all, Disney, NBC, and WarnerMedia didn't enter the streaming war to lose money.