Initially, streaming services -Netflix in mind- turned a blind eye to the practice of password sharing, i.e. giving free access to their Netflix account to someone who does not live under their roof.
Password sharing, estimated shortfall
Indeed, it was a way for them to make themselves known to encourage new subscriptions. But today this fashion has the opposite effect on subscription growth, pushing Netflix to test new methods of pricing password sharing. According to a recent study by Cordcutting, Netflix could lose $790 million this year just because of consumers taking advantage of the service for free. This is the biggest loss among all streaming platforms (Disney+ 440 million this year). By adding the main OTT services -Netflix, Paramount+, Amazon Prime Video, Peacock, HBO Max, Disney+ and Hulu- the losses would amount to a total of 2.3 billion dollars in 2022. Also according to this study, among users of streaming services in the US, 25% enjoy it for free.
