Getting Something for Free is Officially Over

Technology has always been adept at revealing loopholes, not in a dystopian surveillance state way, but more in a way that makes us pay for what we used to get for free.

There was a time when you could spend your Saturday using someone else’s Costco membership, flashing an old student ID for free museum entry, or binge-watching TV shows using a borrowed Netflix account.

pexels.com/cottonbro studio

It wasn't exactly theft, more like taking advantage of a system that you didn't create but had to navigate—arguably a very capitalist move.

But with advancements in the tech that companies use to monitor subscriptions, those freeloading days are over.

Recently, Costco and Disney have followed in Netflix’s footsteps, announcing crackdowns on account sharing.

Now, if you want to stock up on Costco snacks or stream "Frozen" for the kids, you'll need a valid membership or a Disney+ login tied to your household.

The technology that tracks your IP address and scans your face has become more sophisticated. Retailers and streaming services are increasingly using status-verification technology, making it harder to keep using old student discounts on platforms like Amazon Prime or Spotify after graduation.

Netflix’s strategy to curb sharing was a major success. For years, the streaming giant ignored password sharing because it helped more people get hooked on the service.

Netflix kept growing until 2022, when it experienced its first-ever subscriber loss, causing investor panic.

It wasn’t just because of less popular shows like "Virgin River," but also due to new competition from Disney, Apple, HBO, and Amazon, as well as people spending more time socializing in person post-pandemic.

So Netflix decided to capitalize on its brand loyalty, betting that viewers would be willing to pay $7-$15 a month to maintain access.

It’s a very risky but very effective approach that has paid off. Netflix gained 30 million new subscribers last year, and over 9 million in the first quarter of this year.

However, just because Netflix succeeded doesn’t mean other companies will have the same luck. Netflix has been a dominant force in streaming for years, earning the leverage to enforce rules.

Disney’s streaming services only became profitable this year, and while it’s a beloved brand, it’s unclear if it has the same must-watch status as Netflix.

As for Costco, their memberships are crucial to their business model, and the basic membership is $60 a year. Despite the small fee increase, Costco’s membership system is vital for keeping prices low and employees paid.

While free perks may be disappearing, at Costco, you can still get a hot dog and soda for $1.50—a deal that feels nearly free in today’s economy.