Netflix loses $1.62 billion annually due to password sharing, a new study finds.
In October, Netflix revealed its plans to shut down password sharing during its third-quarter earnings interview. One of the executives of the streaming company, Greg Peters, confirmed Netflix will soon change their terms of use and was “continuing to monitor” the situation.
A study by analytics firm Magid states that Netflix loses close to $135 million per month or a total of $1.62 billion annually to those who share their passwords with friends and family. The Magid analytics reports say around 10% of Netflix’s 13.7 million subscribers share their password with at least one other person.
The Hollywood Reporters reports the Alliance for Creativity and Entertainment, an anti-piracy group with members including Warner Bros., Disney, Netflix, Sony, and Paramount, are gearing ups o launch a crackdown on the password sharing in an attempt to better serve their subscribers.
You can read the original story below.
(Original Story: October 21, 2019)On Wednesday, Netflix threatened to crack down on password sharing.
The streaming platform discussed becoming stricter with the number of users using one account.
While Netflix did not say exactly how it would cut down on password sharing, the media believes they will limit devices signed to one account and/or monitor IP addresses. At this time, depending on your subscription package, Netflix puts a limit on the number of devices streaming at one time. The plan is to restrict the sharing of the same account to people of the same household. An even stricter policy Ould be implemented, where accounts shared with friends will come to an end. Greg Peters, one of the Netflix executives, confirmed Netflix will soon change their terms of use and was “continuing to monitor” the situation.
You can check out Netflix’s Q3 Earnings interview in the video below.
In other news, Netflix announced Georgia-filmed ‘Stranger Things’ breaks Netflix’s viewership record. In Netflix’s quarterly earnings report on Wednesday, the streaming platform said 64 million homes watched the third season of Georgia-filmed ‘Stranger Things’ within the first four weeks of its July 4th premiere.
The majority of the views came immediately after the show premiered. Earlier this year, Netflix reported more than 40 million households watched the play within the first four days.
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