The Economics Of Netflix Password Sharing

July 19, 2017 in Daily Bulletin

Sharing is caring. Unless you care about the bottom lines of streaming services wrote Ashley Rodriguez:

  • 12% of American adults who use streaming services say they’ve used the password of someone outside their household.
  • Those most likely to do so are between 18 and 24.
  • Using some assumptions, if Netflix cracked down on password sharing, it could make about $391 million more a year.
  • With annual revenues of $8.8 billion this would represent 4.4% growth.
  • Given that Netflix has been growing 20% a year it’s likely not worth it for the streaming service. But if growth slows it’s possible Netflix executives will start looking into it.

Read more on Quartz.