The staunch reality for streaming services couldn’t be more clear. Revenue is leaking in the billions to fraud, piracy and password sharing, and the problem isn’t slowing down anytime soon.
The reason is simple. Status quo technologies, like IP geolocation, used by streaming platforms to protect revenue streams, are over 40 years old and can be easily spoofed by basic applications from an app store.
The everyday user can do a quick search on the web and access thousands of advanced location spoofing tools, capable of manipulating location signals far more sophisticated than IP addresses. With such widespread access and low barrier to entry, streaming platforms risk losing incremental revenue from users who would have been paying subscribers.
This only touches the surface of what people can do to gain unauthorized access to services at the cost of the companies they exploit. Fraudsters take it to the next level, manipulating their identity and device data to gain unauthorized access to paid services and exploit content in the masses.
The media industry could face losses upward of $9 billion due to password sharing and piracy.
Yet streaming platforms are still relying on outdated IP addresses to protect billions of dollars worth of content.
The path forward is clear—media platforms need to do more to protect their content and users, and recapture their hard-earned revenue.
The next generation of content protection doesn’t just protect revenue or media rights. It unlocks new revenue opportunities. Media solutions made for the future—like device-based geolocation—take multiple robust signals into account, incorporating reliable device/behavioural insights and advanced geolocation data points (Wi-Fi, GPS, GSM, etc.) to ensure users can’t bypass your security measures when they try to pirate your content or share their account.
With these measures in place, protecting billions of dollars worth of content is not the only possibility. You unlock the ability to protect your platform from sophisticated fraud attacks and capture additional revenue streams, whether it’s through optimized ad spending or enhanced content personalization.
The benefits of device-based geolocation for next-generation streaming platforms
Device-based geolocation offers several benefits that unlock new revenue opportunities while keeping your platform, users and content secure.
Password and account sharing
Major streaming companies like Netflix, Disney+, Hulu and Max have been cracking down on password sharing, and it’s no surprise why. Password sharing could be costing companies $12.5 billion in revenue.
According to a report by Parks Associates, the amount of revenue lost to password sharing could be approximately $12.5 billion.
Modern device-based geolocation solutions allow streaming platforms to actually enforce password-sharing initiatives, allowing them to turn their fans into paying subscribers. Unlike traditional methods that rely on IP addresses, which can be easily spoofed or vary across a wide area, modern solutions leverage precise location data with accuracy down to a few meters. This granular approach ensures users trying to access an account are actually from the household they claim to be, taking historical behavioural and device information into account. This enables streaming platforms to recapture billions in revenue lost to password sharing.
Media rights compliance
There’s a reason why media rights contracts can be worth billions: content is valuable. It’s what drives millions of users to purchase multiple streaming services. Yet broadcasters and rights holders can still lose up to 10% of their annual revenue due to geopiracy.
If there’s one thing that cable TV did better than streaming services, it was information transparency. Rights holders and broadcasters would know exactly where their users were coming from, down to the address, allowing clearly informed compliance management. With the shift to online streaming, users could access content from anywhere. Additionally, users can spoof their location with easily accessible tools found even on the App Store.
There are 1.5 billion VPN users in the world, and half of all users say they use VPNs for better access to entertainment content.
With modern solutions like device-based geolocation that gets location accuracy down to a few feet, rights holders and broadcasters can get the same level of confidence as cable TV while still offering the extensive benefits of streaming.
Optimized ad spending
Businesses invest countless hours and resources into advertising, yet ensuring these efforts reach the intended audience remains a persistent challenge. Modern solutions enable precise targeting, even if users employ VPNs or other spoofing tools for personal reasons. By leveraging precise location and device-based signals, platforms can achieve high accuracy in regional targeting. This granular control allows for the delivery of ads to specific addresses, ensuring that valuable ad budgets are not wasted on irrelevant viewers.
Furthermore, this precision enables the delivery of personalized, contextually relevant advertisements based on a user’s location. For instance, if a user is near a stadium, they could see ads for team merchandise or upcoming events. By harnessing the precision of device-based geolocation, media platforms can offer advertisers highly successful and cost-effective ad campaigns, driving better ROI and ultimately driving more revenue.
Robust anti-piracy and fraud prevention
While it’s challenging enough to stop the everyday user from password sharing and unauthorized access to regional content, fraudsters take it to the next level, targeting valuable user data and content from your platform.
Media platforms are particularly at risk, with more than 1 in 10 cases of account takeovers consisting of media and entertainment platforms. Streaming accounts often make attractive targets due to their rich database of content, user data or payment information. The financial and reputational implications for streaming platforms are severe. 43% of users would abandon the service entirely if their accounts were compromised. Neglecting proactive, up-to-date fraud prevention measures could lead to substantial revenue loss or reputational damage.
43% of consumers would abandon a service entirely if their accounts
were compromised.
Not to mention, the adoption of modern AI is leading to more intricate fraud schemes that are becoming increasingly difficult to keep up with. Even amateur fraudsters can now automate schemes like account takeovers and identity theft. However, with modern solutions like device-based geolocation, digital platforms can stay two steps ahead of fraud. Platforms would be able to identify and block various forms of advanced location spoofing, like VPNs and proxy servers, allowing them to pinpoint fraudulent traffic and stop pirates or bad actors with high certainty.
Personalized experiences
Device-based geolocation is a game-changer when it comes to creating personalized experiences on digital platforms. By taking a user’s precise location and behavioural context into account, platforms can ensure the content aligns with regional preferences and licensing agreements. For instance, a user in Vancouver would be prioritized with local news and content relevant to British Columbia. Beyond regional relevance, modern solutions enable the creation of dynamic, context-based recommendations.
Imagine entering a historic site and the media platform automatically pushing content related to that site, such as a movie that was filmed there. Similarly, sports enthusiasts in specific areas known for their passionate support of particular teams can be served content, news, and promotions related to their favourite clubs. This level of location-aware personalization can take recommendations to the next level and even suggest local events or nearby viewing parties. By harnessing the power of device-based geolocation, media platforms can create deeply engaging and relevant experiences that resonate with users on a local level, fostering greater loyalty and satisfaction.
A glimpse into the future: Next-generation solutions in action
The next generation of content protection solutions isn’t siloed in function – they’re robust and versatile at the core, enabling new revenue opportunities and fraud prevention capabilities. It’s not simply a matter of knowing where a user is, but leveraging that intelligence to build a more secure, compliant, and ultimately more profitable business. By properly leveraging advanced geolocation, media platforms are able to prevent unauthorized access and account sharing, adhere to complex media rights, optimize ad spend, and deliver personalized content experiences.
It creates an ecosystem where content rights are protected, advertisers see tangible results, and users enjoy a tailored experience that deepens their engagement and loyalty. This holistic approach, driven by the adaptability of next-generation geolocation, represents not just a revolution in content protection, but a fundamental shift towards a future with more versatile and robust solutions for the media industry.
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