According to a report from Variety, a study by Parks Associates concluded HBO and Netflix lost $500 million in 2015 to illegal password sharing.

When you get Netflix or HBO (HBO GO or HBO Now), you’re agreeing to the terms of service, which, according to Variety, “specify that access to the services are only for personal use and ‘nontransferable.'” By sharing your password and allowing others to use it outside the household, you are technically breaking the agreement you agreed to in the terms of service.

The crazy thing is Netflix and HBO aren’t really doing anything to combat the issue, and the Variety report points out why. Basically, as growing companies, HBO and Netflix are not going to turn away any customers by making them jump through extra hoops, if you will, to stop password sharing.

From the article "Report: Password Sharing Costs HBO, Netflix $500 Million" by Bryce Olin.

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