CONSUMER

The era of ‘freeloading’ off other accounts is officially over

Aug 12, 2024, 6:54 PM | Updated: 6:55 pm

Cutting the cord is not the money saver people thought it would be as they pay for multiple streami...

Cutting the cord is not the money saver people thought it would be as they pay for multiple streaming services.

(CNN) — One of the problems with tech is that it can be really good at narcing. And I don’t mean in the scary Big Brother Thought Police kinda way, more in the lawful evil sense of forcing us to pay for things we used to get for free.

Once upon a time, you could have yourself a nice little Saturday of stocking up at Costco (using your sister’s membership card, naturally), before hitting up a museum (free admission with your 15-year-old expired student ID) or settling into a reality TV binge sesh (streaming on your college roommate’s ex-boyfriend’s Netflix login).

You wouldn’t call it stealing, per se. Mooching, perhaps. Exploiting a loophole in a system of commercialized culture you didn’t create but are forced to participate in — and what could be more capitalist than that?

But thanks to the fine-tuning of the tech that Corporate America uses to police subscriptions, those freeloading days are over.

Costco and Disney this month took a page from the Netflix playbook and announced they are cracking down on account sharers.

So the next time you want to restock your Kirkland chocolate covered almond stash, you’ll need to have an honest-to-God membership of your own that you scan at the door. Want to put on “Frozen” for the kids so you can have two hours to do literally anything else? You’re going to need a Disney+ login associated with your household.

The tech that tracks your IP address and can read your face has gotten more sophisticated, and, as the Wall Street Journal reported last week, retailers and streaming services are increasingly turning to status-verification tech that make it harder for folks to claim student discounts on services like Amazon Prime or Spotify beyond graduation.

 

The Netflix play

 

Cracking down on sharing was hugely successful for Netflix. For years, the streaming giant turned a blind eye to password sharing because doing so allowed more people to experience the product and, crucially, come to rely on it.

Netflix kept growing and growing until 2022, when, for the first time in its history, the company lost subscribers, and investors freaked out.

It wasn’t just because “Virgin River” was practically unwatchable (sorry, it’s true), but also because Netflix had a sudden influx of competition. Disney, Apple, HBO and Amazon stepped up their streaming games. TikTok and YouTube got their talons in us, too. And to some extent, Netflix got hit by the undeniable call of Finally Hanging Out With Friends in Bars Without Masks, a very popular activity at the time.

So Netflix cashed in on its brand loyalty, betting that it had made itself indispensable to enough viewers that they’d be willing to cough up $7-$15 a month to keep their access.

Netflix begins password sharing crackdown in the US, by charging an additional $8 month

It was a risky bet, but one that seemed to pay off. Netflix added 30 million subscribers last year, and more than 9 million in the first quarter of this year.

Of course, just because it worked for Netflix doesn’t mean it’ll be a slam dunk for others. Netflix was lightyears ahead of the competition for streaming, and its years of cranking out content earned it the right to ask customers to finally start playing by the rules.

Disney’s streaming business — Disney+, Hulu and ESPN+ — only became profitable in the second quarter this year. It’s a beloved brand, a name that sparks joy. But has it reached the same level of must-watch-ability that Netflix has built? Unclear. (Season 2 of “Andor” does look pretty dope, though.)

As for Costco, well, here’s the thing: Memberships are pretty much the only way it can exist, and its entry-level membership is just $60 a year. (If that still seems steep, google “Costco discount codes” and you can likely snap one up for half that amount — the internet isn’t completely devoid of deals these days).

Like Netflix, Costco is betting that you’re already emotionally invested in the routine and the satisfaction of getting a closet’s worth of toilet paper that can last the whole year.

Last year, the store reported $4.6 billion in revenue from membership fees, and that accounts for the majority of its profit. The membership fee, which is going up by $5 next month — the first increase since 2017 — allows Costco to keep its prices low and its staff paid.

There may be no such thing as a free lunch, but at Costco there’s at least $1.50 hot dogs and soda, which, in this economy, is nearly free.


The-CNN-Wire™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Consumer

Seth Hiatt said his tabletop game company is being hit with new tariffs on his products that are ma...

Mike Anderson

Tariffs hit Utah businesses that import from China

Seth Hiatt said his tabletop game company is being hit with new tariffs on his products that are manufactured in China – a cost he'll have to pass on to consumers.

2 days ago

RubySnap bakery in downtown Salt Lake City is struggling with the high cost of eggs. Pictured Wedne...

Debbie Worthen

Utah bakery feeling the pain of soaring egg prices

A Utah bakery is feeling the pain of soaring egg prices as they work to bake "joy in a cookie form."

2 days ago

Rehn says despite the her washer’s fifth breakdown, her extended warranty company will not pay ou...

Matt Gephardt and Sloan Schrage, KSL TV

Get Gephardt helps Washington City woman who says her warranty won’t pay out for her unrepairable washer

When a Washington City woman's extended warranty refused to cover the cost to replace her broken-down washer, she decided to Get Gephardt.

3 days ago

FILE – U.S. agriculture could be impacted heavily during a trade war, as it did in 2018-19. (KSL ...

Mike Anderson

Economist: Effects of 2018-19 trade war still linger, shows what to expect from another trade war with China

An economist at Utah State University says tariffs tend to hurt the consumer, and rarely achieve their objectives without doing significant damage.

4 days ago

Super Bowl-Snack Prices...

Susan Montoya Bryan, Associated Press

Winging it for the Super Bowl? Broccoli might be a cheaper party snack this year

The cost of hosting a Super Bowl party is expected to barely budge this year, with an average increase of about 10 cents from the previous year.

6 days ago

People buy groceries at a Walmart Superstore in Secaucus, New Jersey, July 11, 2024....

Paul Wiseman, AP Economics Writer

What are tariffs and how do they work?

Tariffs are in the news at the moment. But what are they?

6 days ago

Sponsored Articles

holiday gift basket with blue tissue paper and gingerbread cookies...

Kneaders Bakery & Cafe

Holiday hacks for a stress-free season

Get more out of your time with family and loved ones over the holidays by following these tips for a stress-free season.

2 computer techs in a computer shop holding up a computer server with the "hang loose" sign...

PC Laptops

A comprehensive guide to choosing the right computer

With these tips, choosing the right computer that fits your needs and your budget will be easier than ever.

crowds of people in a German style Christmas market...

This Is The Place Heritage Park

Celebrate Christkindlmarket at This Is The Place Heritage Park!

The Christkindlmarket is an annual holiday celebration influenced by German traditions and generous giving.

Image of pretty woman walking in snowy mountains. Portrait of female wearing warm winter earmuff, r...

Lighting Design

Brighten your mood this winter with these lighting tricks

Read our lighting tips on how to brighten your mood in the winter if you are experiencing seasonal affective disorder.

A kitchen with a washer and dryer and a refrigerator...

Appliance Man

Appliance Man: a trusted name in Utah’s home appliance industry

Despite many recent closures of local appliance stores, Appliance Man remains Utah's trusted home appliance business and is here to stay.

abstract vector digital social network technology background...

Les Olson

Protecting yourself against social engineering attacks

Learn more about the common types of social engineering to protect your online or offline assets from an attack.

The era of ‘freeloading’ off other accounts is officially over