Netflix Loses Upwards of $1.5B USD a Year on Password Sharing (UPDATE)
The platform no longer wants you to share your account.
UPDATE (November 6, 2019): Late last month streaming giant Netflix threatened to crack down on password sharing during its third-quarter earnings interview. Greg Peters, one of the executives of the platform, confirmed that Netflix will soon change its terms of use and was “continuing to monitor” the situation.
And rightfully so considering a study by analytics firm Magid states that Netflix loses upwards of $135 million USD per month — or a whopping $1.62 billion USD annually — on those people who share their passwords with friends and family. The report goes on to state around 10 percent of Netflix’s 13.7 million subscribers share their password with at least one other person.
Additionally The Hollywood Reporter cites the Alliance for Creativity and Entertainment — an anti-piracy group with members like Warner Brothers, Disney, Netflix, Sony, and Paramount — is gearing up to launch a crackdown on the password sharing in an attempt to better serve its members. Find the original story below and let us know your thoughts in the comment section.
In related news, here’s how much each streaming service costs.
Original Story (October 21, 2019): During its third-quarter earnings interview on Wednesday, Netflix threatened to crack down on password sharing. The streaming giant went on to discuss becoming stricter with the number of users taking advantage of one account.
Although Netflix didn’t go into specifics as to how it would cut down on password sharing, it’s believed the media company will limit devices signed to one account and/or take a look into IP addresses. Currently, depending on your subscription tier, Netflix limits the amount of devices streaming simultaneously. The goal is to restrict the sharing of the same account to people only from the same household. Moving forward, an even stricter policy could be implemented which means accounts shared with friends will come to an end. Greg Peters, one of the executives of the platform, confirmed that Netflix will soon change its terms of use and was “continuing to monitor” the situation.
Check out Netflix’s full Q3 2019 Earnings interview in the video below and let us know your thoughts on the situation in the comment section below.
Netflix also recently revealed its top 10 most-watched originals.
In related news, here’s how much each streaming service costs.
