Password sharing between friends and family is pretty standard practice when it comes to the copious amounts of streaming platforms available. The Alliance for Creativity and Entertainment (ACE) -- an anti-piracy group featuring Warner Bros., Disney, Netflix, Sony and Paramount -- recently announced its intention to take action against people sharing their subscriptions
Now, new information has surfaced regarding much revenue streaming giant Netflix has been losing annually, thanks to multiple people benefitting from a single account. Unsurprisingly, it's a hefty amount.
A survey conducted by Magid for CNBC suggests that the problem may be a generational one. The survey's results concluded that although only 9% of customers share their passwords, 35% of millennials share login information when it comes to streaming services. This is in contrast to 19% of Generations X and 13% of Baby Boomers.
Despite 9% initially seeming like a low number, when you take into consideration Netflix's massive subscriber base of 137 million customers, that near 10% equates to 13.7 million people not signed up at Netflix's $9.95 basic monthly charge. In total, Netflix is losing out on over $135 million worth of subscribers, or $1.62 billion annually.
Netflix product boss Greg Peters has previously stated "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."
Five years ago, HBO's then-CEO Richard Plepler claimed that password sharing had "no impact on the business," calling it a "terrific marketing vehicle for the next generation of viewers." Netflix CEO Reed Hastings had a more pragmatic outlook, stating "Password sharing is something you have to learn to live with."