We can all admit that at least once in the recent era of video streaming, we’ve tried to scab a Netflix password off a family member or friend (no admission of guilt here). In a bid to save upwards of $10 a month to binge any number of in-demand television series and films, the seemingly innocent act is just that, until millions of users worldwide also do it. Now, the official report to how much it actually costs the service, is in.
A study by analytics firm Magid found that Netflix loses out on upwards of $135 million USD per month, or, an enormous $1.62 billion USD annually. The report continues to state that around 10 percent of Netflix’s 13.7 million subscribers share their password with at least one other person – case in point, Netflix is watching you.
Last month, during its Q3 earnings report, the international company mentioned it would crackdown on password sharing and piracy. While Netflix – depending on your membership tier – allows a certain number of simultaneous streaming, the goal according to reports suggests restricting this to single households to better monitor the problem. Yikes. One of its executives, Greg Peters, has said Netflix will soon change its user policy.
Additionally, The Hollywood Reporter has revealed that Alliance for Creativity and Entertainment has announced a working group “to reduce unauthorised access to content, specifically mentioning “improper password sharing” as a top concern,” on a number of streaming services.
Stay tuned for updates.