In some parts of the tech and media world, sharing is seen as a smart way to give more people access at a lower cost. In others, it’s seen as a threat to profits and something companies try to stop. This article looks at both views — from tools like shared proxy servers and family music plans that support group use, to Netflix’s well-known efforts to stop people from sharing passwords.

Shared Proxy Servers: One Resource, Many Users

Shared proxy servers are a prime example of the “many users, one resource” model. With  shared proxies, multiple people use the same proxy IP which can be seen as splitting a single resource among a group. It’s the equivalent of carpooling or sharing a workspace when everyone uses the same infrastructure, and it drives down the cost per person. This logic of operation is the reason why proxy services are much more affordable than alternative options reserved for single individuals. This affordability means even budget-conscious users can enjoy the privacy benefits of a proxy without bearing the full expense alone.

When thinking about prices, some people may argue that if something works perfectly, it won’t come at a lower cost in our competitive world. But this is not the case, as a lower cost isn’t explained by the quality of service but by the way that service operates. So, shared proxies still provide a layer of anonymity and access that individual users value.

Family Plans in Music Streaming

Music streaming services like globally influential Spotify and Apple Music have tapped into shared access through family plans that let multiple people use one subscription. For example, Spotify’s Premium Family plan was about $14.99 per month for up to six accounts under one bill (recent price adjustments have it around $19.99 in the U.S.), and Apple Music’s family plan similarly allows up to six members for $16.99 a month. Instead of each person paying for a separate subscription, a whole household (or group of friends) can share one, drastically lowering the per-person cost.

This approach has clear benefits for consumers, but it’s also part of a strategic economic play for the companies. By offering a discounted group plan, services like Spotify gain more total subscribers (and keep them happier) even if they earn a bit less from each one. In industry filings, Spotify acknowledged that its family and student plans lowered its average revenue per user but simultaneously improved user retention. So, Spotify is prioritizing user growth and loyalty even if it means making less money per user in the short run.

Netflix’s Password Sharing Crackdown

A high-profile example of fighting against sharing is Netflix’s recent crackdown on password sharing. After years of growth, Netflix began seeing subscription numbers plateau, and it identified account sharing as a revenue leak — by 2022, the company estimated over 100 million households were sharing passwords instead of each having their own account (around 30 million of these in the U.S.).

Netflix rolled out this policy globally in 2023, after test runs in smaller markets, and framed it as a positive change. “We believe we’ve successfully addressed account sharing, ensuring that when people enjoy Netflix they pay for the service too,” Netflix mentioned in an earnings report. Guess what? While some existing subscribers canceled in protest, far more people signed up anew, validating the strategy.

This is a striking contrast to the sharing-friendly strategies elsewhere in the digital world, but it underscores that when revenue is at stake, companies will fight against unauthorized sharing to protect their business model.