According to the Diffusion Group, more than 20% of adult broadband users who stream video from an online subscription service such as Netflix, Hulu, etc. are "cord cheaters," consumers who access the services using the account name and password of someone who does not reside in the same household.

"While it is widely acknowledged that 'cord cheating' is occurring, few comprehend how widespread the behavior has become," wrote Michael Greeson, TDG founder and director of research.

According to a TDG's latest research, a sizable segment of online subscription video viewers live in households that are not paying for on-demand access to movies, TV programs, and other high-value video content. Content providers are losing substantial revenue by not enforcing more restrictive authentication procedures.