July 12, 2016
A three-judge panel of the U.S. Court of Appeals for the 9th Circuit has ruled that using another person’s password to access online services such as HBO GO and Netflix is now considered in violation of federal computer laws. “But don’t panic,” suggests Variety. “It’s not likely that subscription VOD providers will suddenly have the feds descend on people swapping their login credentials.” While a 2015 study from Parks Associates projected that SVOD services could lose up to $500 million in revenue from password sharing, several services have downplayed the impact. During CES, Netflix CEO Reed Hastings even noted that many violators often become paying customers.