Analyst: 62% of Netflix Password-Sharing Users Would Drop Service

With Netflix set to begin enforcing new guidelines for subscribers sharing their password to non-subscribing third parties by the end of the first quarter, new data from Wall Street firm Jeffries finds that 62% of people now accessing Netflix for free have little interest in paying for access going forward.

Citing a survey of 380 people who don’t subscribe to Netflix but access content from a third-party subscriber, 35% said they could find an alternative content source (notably Hulu and Peacock), another 31% said they didn’t think Netflix content was worth paying for, while 25% said they could afford paying for access.  About 48% of survey respondents said they access Netflix content at least once a year.

On the flipside, the number of non-subscribers switching to some form of payment provides Netflix will some light at the end of the tunnel, according to analyst Andrew Uerkwitz.

“Our estimates imply 21% retention of borrowers in 2023, growing to 45% by end of 2024 — we feel good about this in light of a survey where 38% indicate immediate retention upon password-sharing crackdown,” Uerkwitz wrote in a note.

Indeed, the survey found that 40% of respondents said they would consider Netflix’s less expensive ad-supported subscription plan.

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