A reported $1.6 BILLION annually is lost by Netflix due to password sharing. This of course is assuming that everyone who is sharing a password would sign up if they couldn’t share.
An analytics firm revealed in a recent study that an estimated 35% of millennials, 19% of Generation X subscribers and 13% of Baby Boomers share passwords for streaming services.
If 10% of Netflix’s 137 million customers are sharing their passwords with someone without a Netflix account that means nearly 14 million people aren’t paying for the service. Netflix would be bringing in about $135 million more a month or $1.6 billion on an annual basis if they did indeed pay for the service.
The number is conservative since this presumes the cost-per-user would be $10. The most popular plan allows two simultaneous streams and makes sharing possible for the cost of $12.99 a month. Netflix also offers a $15.99 plan that allows four screens at once.
For more on this story check out this recent article by BroBible.