The online entertainment and streaming industries had massive growth over the past few years. A part of this has been attributed to the COVID-19 pandemic, which prohibited people from going into entertainment establishments like cinemas, theaters, casinos, and gaming arcades.
But as the online industry exists in the ever-evolving digital plane, it encounters cyber threats, like malware and user abuse, that risk the company’s data. Password sharing is one of the cyber security issues that streaming services face today.
The Effects of Password Sharing
According to a report by City analyst Jason Bazinet, password sharing costs American streaming video services around $25 billion yearly income. He added that Netflix, a leading industry platform, could be missing out on 25% of that total. This amounts to over 6 billion in lost revenue.
Password sharing is a form of theft. In the 9thUS Circuit Court of Appeals, sharing online passwords was ruled as a crime under the Computer Fraud and Abuse Act. Netflix also includes in its user agreement that password sharing is strictly prohibited. As of now, the company has not prosecuted any offenders.
Netflix has established plans to impede password sharing among its users. The company will start charging users extra for password-sharing privileges in early 2023. Initially, the streaming platformlooked into using email and mobile verification to authenticate the identity of users. This was evident in their preliminary testing way back in 2021. But this method can still be easily bypassed by accessing the code in the account owner’s email or messages, enforcing the need for stronger identity authentication.
Establishing Robust Identity Authentication Systems
With the evolution and growth of the digital space, passwords and other forms of knowledge-based verification have become less effective. Online streaming platforms can benefit from adopting passwordless authentication systems.
Biometric identification is an excellent alternative to knowledge-based authentication. It can help streaming companies impede password sharing in their services by binding an account to the user’s biometrics.
FIDO authentication is a cybersecurity standard that enables the smooth and safe use of biometric technology. It allows the use of an individual’s facial features or fingerprint as a form of verification to keep accounts secure and more accessible.
Proof™ by authID is an example of a cybersecurity system that can aid streaming platforms in their fight against password sharing. It provides a method to authenticate accounts using mobile and biometric technology. With the solution, selfies can be used to verify actors and unlock accounts. Proof™ also offers age verification systems for age-restricted digital platforms and uses API to link with trusted government-owned registries.
With billions of dollars on the line, Netflix and other online streaming platforms should acquire more robust identity and authentication management systems. Opting for passwordless verifications is a step toward strengthening systems against password sharing and other cyberthreats.
Learn more about the importance and effects of robust identify authentication in online entertainment and streaming by reading this blog by authID, a leading cybersecurity company specializing in biometrics and passwordless authentication.