April 2, 2021
New consumer research from Leichtman Research Group found that 82% of U.S. households have at least one streaming video service from a list of 11 options; 51% of all households have three or more of these services. However, not all of these services are being paid for directly by those who use them.
Leichtman found that 69% of all SVOD services are fully paid for and are not shared with others outside the household. At the same time, 27% of all direct-to-consumer services are used in more than one household; 13% of services are used and paid for by those that also share them with someone outside the household; 12% of services are used in one household but are borrowed from another household that is paying for the service; 2% of services are used by multiple households that share costs; and 4% of all services are not paid for because they come with another service.
These findings are based on an online survey of 6,262 households from throughout the United States.
Separate research contends SVOD behemoth Netflix is losing billions annually in potential revenue due to password sharing.
Leichtman also found that 16% of all households have at least one DTC service that is fully paid for by someone else; 26% of adults ages 18 to 34 have at least one DTC service that is fully paid for by someone else, compared with 12% of ages 35 and older. Adults ages 18 to 44 account for 63% of those with an online pay-TV service; 77% of online TV subscribers are very satisfied with their service, compared with 69% in 2018; 13% are very likely to switch service in the next six months, compared with 27% in 2018; 20% of all services are shared by multiple households, including 6% that are fully paid for by someone outside the household.
“Password sharing is [quite] prevalent throughout the streaming video industry,” analyst Leichtman said in a statement. “Yet, sharing of streaming services should not solely be viewed as lost revenue, as the ability to share with others is also part of the retention strategy for the services.”