News

Analysis: 33% of Netflix Subs Share the Service

New consumer research from Leichtman Research Group found that 83% of U.S. households have at least one streaming video service from the 15 top direct-to-consumer and subscription video-on-demand services, including 67% of all households with Netflix.

However, not all Netflix and other streaming services are paid for directly by those who use them. The study found that 64% of Netflix subs do not share their account with others outside the household, while 33% are used by more than one household.

Specifically, Leichtman found that 15% of Netflix services are used and paid for by those that also share them with someone outside the household. Another 15% of Netflix accounts are used in one household but are borrowed from another household that is paying for the service, while 3% of services are used by multiple households that share costs, and 3% are not paid for because they come with another service.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

These findings are based on an online survey of 4,400 households from throughout the U.S. and are part of a new LRG study, Internet-Delivered Pay-TV Services 2022. This is LRG’s fifth annual study focused on the online pay-TV category, along with other DTC streaming video services.

“Password sharing is an inherent feature of most streaming services,” analyst Bruce Leichtman said in a statement. “Sharing helps to expand the user base and retain customers, but it also creates a gap between the number of households that have a service, and actual paying subscribers.”

Other findings from the study include that 29% of all DTC services are shared with others outside the household, 12% of all DTC services are fully paid for by someone outside the household, 34% of adults ages 18-34 have at least one DTC service that is fully paid for by someone else — compared to 14% of ages 35+.

About 5% of all households had Netflix in the past year, but currently do not — similar to 6% for Hulu, 5% for Amazon Prime, and 5% for live pay-TV services. Adults ages 18-44 account for 65% of all with an online pay-TV service. Another 79% of online TV subs are very satisfied with their service — compared with 76% in 2020 and 69% in 2018. And 23% of all these services are shared by multiple households, including 7% of all services that are fully paid for by someone outside the household.

Leave a Reply

Your email address will not be published.

two × 1 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.