Sites such as Hulu and Netflix both let people view shows while paying a monthly fee. However, you must have an account in order to use the sites. The difference between the two is that Hulu airs current TV shows the day after a new episode comes out.
Lots of people prefer using Hulu and/or Netflix instead of watching actual television, because they can watch whatever show they want, whenever and wherever they want.
In order to make this possible, these companies buy the rights to air these shows on their sites. They negotiate prices and are able to air shows and movies for a certain amount of time. For movies, they are not allowed to air them until a certain amount of time after the movie has been released in theaters. This is to ensure that the movie companies benefit from profit as much as possible while it is still new.
These companies require very strict copyright laws to ensure that first, they do not get into trouble for infringement of copyright law, and second to ensure others to not break the law while using their sites.
The companies do however lose money because people share their accounts with friends, and therefore people can view the shows for free. The companies are well aware of this, however they cannot do much about it. If these companies decide to put stricter restrictions in order to prevent this, they would probably end up losing customers because people would be unhappy about the changes. This is why I believe they should just keep restrictions as they are instead of strengthening them.