People get hung up on the word licence But the word licence also means permission given by a company to produce or use something that they have created or that belongs to them: A subscription is a type of licence. You pay a fee and the company gives you permission (a licence) to use that service, if you stop paying or break the T&C they revoke your permission, thus your licence to use their services You pay Netflix and they give you permission (a licence) to watch Netflix. If you use your neighbours login cos you do not have a Netflix subscription you are watching Netflix without a licence to do so When you play a video game you have to agree to an EULA (End User Licensing agreement) which outlines the licensing terms for using the game, including any restrictions on how the software can be used, copied, or modified. That is the company giving you licence to play that game. if you break the terms cos you cheat and use hacks they can revoke your licence to play that game by banning you.