Sharing your Netflix password is not a new thing. However, that is not just your little secret; the company knows that too. The US streaming giant recently announced its Q3 earnings report indicating an increase in revenue, but missing out on its subscriber count targets.
After the Q3 earnings report was released, Netflix’s CFO Spencer Neumann, in an interview on YouTube, stated the company is considering its options.
In a response after he was asked about password sharing, Spencer Neumann said, “We continue to monitor it… We’re looking at the situation, and we’ll [look for] those consumer-friendly ways to push on the edges of that.”
But don’t panic already, the company has “no big plans to announce at this time in terms of doing something different.” Doing this in a “consumer-friendly way” is possibly meant to ensure it does not hurt its paying subscribers. But who knows? We might be wrong.
Still, it seems streaming companies have become wary of sharing passwords across the board. Last month, Spotify also announced that they would be periodically checking in on location data. A move that was meant to ensure that family accounts were not being abused by password sharing.
Password sharing is becoming a new threat to streaming services according to research. For example, research firm Magid stated that around nine percent of users share their passwords of streaming services.
Younger users account for the most percentage, with nineteen percent of generation X and thirty-five percent of millennials sharing their streaming service passwords. Translate this in terms of revenue, and you will realize streaming services lose some good amount of revenue as a result.