Study Reveals Netflix Losing 1.5 Billion Dollars Annually Due to Password Sharing
Netflix is worried about its losses due to password sharing. As per reports, the company's product team is looking into the matter.
Image for representation. (REUTERS/Mike Blake/File Photo)
Sharing is a word that is often used along with Netflix. The OTT streaming service is known for often being shared among friends. This has helped viewers save a lot of money. However, this has cost Netflix a lot. A recent study calculated the amount of losses and it's huge.
The study was conducted by an analytics firm called Magid. The study assumed that out of 13.7 million users, 10 percent share their passwords with at least one person. They found that Netflix loses out on 1.62 billion dollars annually due to password sharing.
Netflix, apparently, is not taking it lightly. The minds behind the streaming service have been planning ways to cut down on the password sharing process. The company's product head Greg Peers, while talking about the third-quarter earnings of 2019, addressed the issue of password sharing.
He said, "We continue to monitor it. We'll continue to look at the situation and we'll see those consumer-friendly ways to push on the edge of that but we've got no big plans at this point in time in terms of doing something different there."
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