Streaming Services Losing Money From Password Sharing

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DALLAS -- As little kids, we're taught sharing is caring. And there’s no time that it’s been easier to share than in the digital age, maybe too easy.

At least that's what some media companies must be thinking with streaming services now taking us out of the prehistoric times of traditional cable. But with streaming comes the sharing of passwords.

According to research firm Parks Associates, Netflix, HBO and other streaming services are losing as much as $500 million this year by not putting a stop to password sharing.

The demo that uses or abuses sharing passwords the most? People ages 18 to 24.

The industry calls them “cord-nevers” because they've never subscribed to cable and likely never will. So, why haven't networks pulled the plug on these freeloaders? Turns out they don't want to complicate the process for current and future customers.

With Netflix boasting over 65 million subscribers why mess with a good thing right?

So, who can blame people for skipping the signup and getting their “share” of free TV?