August 21, 2018
With Netflix having largest SVOD subscriber base in the United States and globally, conventional wisdom suggests the sharing of passwords among subs would be problematic.
Not so, according to new data from Ampere Analysis, which contends sharing of passwords among Netflix subs is less than 10%. The report found that password sharing among Netflix subs remains low globally — even in regions historically rampant in content piracy.
Ampere found that password sharing among Amazon Prime households (about 22% of U.S. households) greatly exceeds Netflix households (25%) — a factor the research firm attributed to Prime’s overarching ecommerce component.
In addition, the report found that a vast majority of Amazon Prime and Netflix households (97%) are not multi-user streaming video households.
“There is a widely-held belief that password sharing among Netflix homes is rife, but our data is telling a different story,” Guy Bisson, research director at Ampere, said in a statement.
Moving forward, it looks as if password sharing is a fact of life for SVOD players, with Amazon too suffering from account sharing for its Prime Video service.
Bisson said the 9% password sharing among Netflix households represents a revenue opportunity for the SVOD leader.
“Netflix has a potential revenue gain that can be switched on at will by locking down account sharing, but it’s more likely to be seen as an additional — and likely very effective — marketing and subscriber acquisition cost,” he said.