According to the Leichtman Research Group study, Netflix’s 15% of streamers are borrowing the Netflix password from family and friends. One of the famous streaming apps Netflix is used by almost every person on the globe, including all who pay for it and who ask others to share their log-in passwords.
According to the research done by Leichtman Research Group, 33% of users of the streaming giant Netflix that shows up on screens are from multiple households. You can simply say if it wasn’t for password sharing, the streaming giant wouldn’t be having a huge number of viewers in almost every house. And the study is proof of how the services of Netflix are available in most houses. There are 15 % of the users who share their log-in information with others, and another 15% are those who receive that information and use it without paying anything in return, the study states. 3% are those who split the subscription with other households and the other 3% use Netflix that comes with the other services, so they don’t pay for it. Only 64% of users pay for the service and don’t share the password with other households.
The survey of Leichtman was conducted online, there were 4400 respondents the age of 18 and above. It was conducted in February and they found, with a 1.5% statistical error, that there are similar levels of account sharing between streaming services collectively.
Bruce Leichtman, President and Principal Analyst of Leichtman, said that “Password sharing is an inherent feature of most streaming services. No doubt sharing helps in expanding the user base and retaining customers.” He added, “but it cannot be denied that it too creates a gap between the number of households that have a service and actual paying subscribers.”
In mid of March, Netflix announced that it will charge extra who share the login with other households. New Technology is going through testing that will detect the people at different locations using the same account. Netflix said that it will test a ‘sub account’ plan for up to two persons who do not live with the main respondent. The amount per month of that plan will be around $2.99 in Chile, Costa Rica along with Peru. And if there is a need for an extra account the charges will be basic membership’s 30% to 40%. It also announced raising the prices of its subscriptions for everyone whether they are new or existing ones.