Survey Reveals Shocking Numbers on Netflix Password Sharing With Subscription Rate Flattering In The US

Survey Reveals Shocking Numbers on Netflix Password Sharing With Subscription Rate Flattering In The US

Netflix has been loyal to its customers in providing quality content and keeping them entertained. Sure, there have been delays and cancellations of our favorite dramas at times. But the streaming giant more or less provides us with what it promises. But are the subscribers as much loyal? The streaming service had to question this because of the Netflix password sharing trends.

Different OTT platforms have acquired various policies, tactics, and offers to build a large subscriber base. Netflix too has done the same. At premium and standard levels, we get to create up to 5 profiles on devices made after 2013, giving us streaming privacy within the household. However, this has cost Netflix itself at a certain level. There has been a large audience who enjoys its services with no kind of payback. Recently, Leichtman Research Group did extensive research, and this is what they found out.

One-third of the Netflix subscribers share their password

According to the new data from Leichtman Research Group, and as reported by Deadline; about one-third of U.S. subscribers share their login credentials, hence confirming Netflix’s own research. Out of 4,400 consumers, 64% of respondents said they pay for and use Netflix only in their own household, and 33% indicate some form of sharing. (The remaining 3% are households whose Netflix comes packaged via other subscriptions.)

Netflix has 74 million customers in the United States and Canada and has reached approximately 70% of broadband households in the United States. Netflix has recently phased in fee increases to maintain paying its $18 billion in annual programming spending, despite subscription growth slowing in the region. Moreover, according to the report, 29% of all direct-to-consumer services are shared with individuals outside the household.

Unsurprisingly, younger viewers are the most likely to borrow login credentials. According to the report, 34% of persons aged 18 to 34 have at least one streaming service that is totally paid for by someone else, compared to 14% of those aged 35 and up. Further, someone from outside the household entirely compensates for about 7% of them.

Earlier, Netflix too conducted such surveys and launched a test in three regions outside the U.S. to levitate its revenue. This would eventually help in funding for high-budget cinematography. At last, as noted by Bruce Leichtman (president and principal analyst for LRG) and we quote, “Password sharing is an inherent feature of most streaming services.” He further said, “but it also creates a gap between the number of households that have a service and actual paying subscribers.”

ALSO READ- Netflix Says NO to Freeloading With Its New Password Sharing Terms and Conditions

Let us know in the comment section, what do you think of password-sharing strategies adopted by Netflix.

 

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