To combat a new generation of entertainment thieves, Tennessee Gov. Bill Haslam has signed legislation that makes sharing passwords to subscription entertainment services like Netflix and Hulu Plus a crime.
Even if you have a friend’s permission to use the password, lawmakers have moved to make it illegal to listen to songs or watch movies on subscription services that you aren’t paying for — unless you are with the subscriber. The law aims to stop the revenue bleeding for movie, TV and music producers.
“What becomes not legal is if you send your username and password to all your friends so they can get free subscriptions,” said the bill’s House sponsor, state Rep. Gerald McCormick. Consumers caught stealing $ 500 or less worth of entertainment services will face misdemeanor charges, including up to a year in jail and a $ 2,500 fine, according to the Associated Press. Stealing more than $ 500 worth constitutes a felony.
Stealing Subscriptions
Rob Enderle, principal analyst at the Enderle Group, compared stealing Netflix or Rhapsody subscription services to pirating cable. In the early days of cable, he noted, neighbors would get together and share the cost of the service. In today’s modern world, he explained, the same thing happens with Netflix, and the new law aims to deter the behavior.
“These services are supported by people that pay for them and the licenses for the movies are for individual households. The licenses are not designed or funded to move across households or neighborhoods unless it’s expressly provided as a service. So, in effect, it’s theft,” Enderle said.
“To preserve the financial model of the providers, it appears the government is moving to protect these services much like they moved to protect the cable providers when people were stealing cable,” he added. “This new law is just an adjunct to older legislation. We…
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