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    Netflix’s password-sharing problem could see an end as Adobe says it has a solution

    Netflix’s password-sharing problem could see an end as Adobe says it has a solution

    Netflix’s password-sharing problem could see an end as Adobe says it has a solution
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    By CNBCTV18.com  IST (Updated)

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    In a letter sent to shareholders in April this year, the streaming giant said it suffered a net loss of about 2,00,000 subscribers in the January-March quarter and its subscribers reduced from 221,840,000 to 221,640,000. The company said numbers would drop to roughly 219,640,000 in the second quarter of 2022.

    Online streaming giant Netflix has been trying to crack down on the password sharing problem for more than a decade, to cut down on freeloaders without hurting its long-time customers. Adobe believes it has a solution for Netflix’s ‘credential sharing’ or ‘password piracy’ problems.
    At one time ‘password sharing’ was strategically ignored to encourage good customer relations and at the same time introduce friends and families to legal streaming. However, Netflix has been losing subscribers as a result of others mooching off of paid accounts.
    In a letter sent to shareholders in April this year, the streaming giant said it suffered a net loss of about 2,00,000 subscribers in the January-March quarter and its subscribers reduced from 221,840,000 to 221,640,000. The company said numbers would drop to roughly 219,640,000 in the second quarter of 2022. Netflix estimated that there were over 100 million additional households, including more than 30 million in the United States and Canada, which were accessing streaming services with credentials that were not theirs without paying for the privilege, Wired reported.
    Adobe believes Netflix suffers most among streaming giants from credential sharing. However, taking steps to reduce password sharing could include measures such as repeatedly requesting login information, strictly enforcing device limits, multi-factor authentication and aggressively enforcing concurrent connection limits, which may irritate the loyal customer of the streaming giant.
    Since every user is different, Adobe suggests that actions taken against an account should be part of a data-driven strategy to “measure, manage and monetise” password sharing. The company suggests deploying machine learning models to understand the behavioural patterns of the customers associated with an account in order to determine how the account is being used. Accordingly, measures can be taken into an account.
    Last month, Adobe launched the Primetime Account IQ, which helps video streaming services to identify and understand credential sharing activity. The Account IQ data analysis is powered by Adobe’s artificial intelligence and machine learning technology Adobe Sensei. It uses multiple ML-based models to check and determine usage patterns and provide subscriber insights. This could help streaming giants effectively monetise subscriber behaviour.
    According to Adobe, the system can also be used to identify customers who display good behaviour and reward them by eliminating authentication requirements or device registrations.
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