Netflix Account-Sharing Crackdown: Is It Making a Dent?

Netflix's crackdown on account-sharing, appeared on the horizon a year ago, seems to have had limited success in persuading freeloaders to pay up, according to a survey by MoffettNathanson and Publishers Clearing House which quizzed 19K Americans in Q3 about their Netflix habits, and the results reveal that most users abide by the rules. A substantial 77% confirmed they use their own accounts, while 8% occasionally rely on someone else's subscription, and 14% solely stream on others' subscription.

Typically, account-sharing revolves around family connections, with 42% being parents sharing with their children, 24% involving siblings, and 17% linking to other family members.

Netflix has yet to significantly deter account borrowers, with only 23% report receiving warnings, although 72% of these were subsequently locked out. The report doesn't delve into whether these users attempted to bypass Netflix's sharing restrictions.

Furthermore, those caught borrowing accounts appear ready to switch elsewhere, maybe to some free video-streaming platforms, with just 32% indicating they would subscribe or had already subscribed to their own Netflix accounts. This contrasts with 22% of borrowers who, despite facing potential consequences, vowed to pay or already did.

The analysis suggests that if Netflix can entice 25% of current sharers to resubscribe to their ad-tier, it could result in nearly 7 million additional subscribers and over $560 million in extra annual growth. This potential boost may increase further if Netflix implements an anticipated rate hike.

While Netflix's Q2 earnings showed promising subscriber growth and the adoption of the "extra member slot" option, the success of its crackdown on account-sharing remains uncertain. Future surveys may shed light on whether users embraced Netflix's offer to accommodate additional viewers or if Disney+ extends a similar account-sharing crackdown.

Netflix's quest to curb account sharing: Find out what viewers are really doing in response
Photo: boliviainteligente/unsplash

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