In addition to reportedly losing billions annually in lost revenue due to password sharing, new data suggests the black market for third-party login details and passwords is big business.
Credential sharing continues to be a hot topic as more businesses turn to subscription-based revenue models. Netflix’s recent efforts to mitigate exposure is the latest example. Red Points, a brand-protection services company, surveyed 1,000 U.S. adults to better understand if they sell their personal login details and passwords for streaming services such as Netflix, Hulu, Spotify, Twitch, Microsoft Office, Disney+, HBO Max and Peacock, among others.
Notably, 40% of respondents said they have resold their login details and password; out of those that are using someone else’s personal login details, 58% paid for the information online. Last November, data from KillTheCableBill.com found that a majority (54%) of Netflix subscribers share with friends outside the home.
Separate data from Citi Global Markets analyst Jason Bazinet contends the SVOD behemoth is losing about $6.2 billion each year from lost revenue when non-subs stream content using someone else’s password.
Red Points found that 51% of respondents said they are currently using someone else’s personal login details and passwords for streaming services. Another 40% said they have resold login details and passwords for streaming services, with 66% of 18-30-year-olds purchasing access to login details and passwords online.
About 65% respondents resell personal login and passwords information on social media; 64% resell on e-commerce websites; 56% resell on marketplaces; and 56% resell on end-to-end encrypted messaging sites.