Q: iCloud Password to Rent Movies and Security

Night in with friends and friends of friends, we decided to rent a movie. Using the Apple TV (32GB), which is connected to the 60' TV in the living room, during the purchase process, it asks to enter the password. Is it just me thinking that this presents a security issue, since everyone looking at the TV can just see me entering my iCloud password? Is there a way to go through the purchase process on the iPhone, for example, then just play that same movie on the Apple TV? Or are we supposed to change the password every time we purchase/rent content while other people are in the room? Am I looking at this the wrong way or perhaps approaching this wrong?