Account sharing, the next big challenge for giants of video on demand?

Account sharing, the next big challenge for giants of video on demand?

Netflix may very well see their own subscribers as the main threats to its business, the video-on-demand service that may shut down 137 million subscriptions, should also worry about people who are using the account of someone they know. Do you see what I mean ?

According to a study of the site specialising in television and streaming, Cordcutting, a user out of five benefits from someone else’s subscription. If the competition intensifies between VOD companies, they should definitely pay more attention. 

#Netflix may very well see their own subscribers as the main threats to its business, the video-on-demand service that may shut down 137 million subscriptions, should also worry about people who are using the account of someone they know. Do you see what I mean ?

Netflix CEO Reed Hastings told the CES in Las Vegas in January 2016, “We like the fact that people share [their account] Netflix. It’s something positive, not negative. ” But will the king of streaming keep this position for a long time if account sharing affects its results against Amazon Prime Video, Hulu, HBO, and soon Disney +?

Loss of $ 2.3 billion a year for Netflix

For Netflix, the most popular streaming platform, considering that 15% of paid users share their subscription to $ 7.99 a month with at least one other person, this is a shortfall of about 192 million dollars a month and $ 2.3 billion a year, according to the study. For their part, Hulu and Amazon Prime Video would spend respectively 40 million and 45 million dollars per month because of people who use their service without paying (19.2% of users at Hulu and 16.5% at Amazon Prime Video).
Note that the study does not take into account the shortfalls of these platforms due to the piracy of its content on various illegal streaming sites.

Different policies of account sharing

On average, people who use a Netflix friend’s account do so for an average of 26 months. This saves them over $ 207 for a $ 7.99 subscription. Similarly, a secondary user of Amazon Prime Video does it for 16 months and saves $ 143.84 (for a $ 8.99 subscription). Hulu is only used for eleven months among these opportunists of video streaming. They save $ 87.89.
Officially, Netflix prohibits the sharing of accounts of its subscribers without premium subscription. Hulu allows sharing the account, but asks paying people to be responsible for its use by relatives. Amazon allows sharing of accounts up to ten people, but they must be in the same household.

59% of non-paying users willing to pay

According to Cordcutting’s study, nearly 59% of people who use another’s Netflix account say they are willing to pay for their own subscription if their shared access is lost. Women are also much more likely to pay for their own subscription (74%) than men (45%). The former spend more time on the platform than the latter (509 hours per year, or 50 hours more). At Amazon Prime Video and Hulu, non-paying users are less likely to pay for the service if the shared account is lost.
To conduct this study, Cordcutting surveyed 1,127 people who use a video-on-demand service: 50.9% men and 49.1% women aged 18 to 81, with an average of 37 years and one standard deviation of 11.9 years.
In France, as in the world, the video-on-demand giant Netflix continues to climb and now has 5 million subscribers in France. With nearly 3.5 million subscribers in the country in April 2018, this means that the platform has signed about 1.5 million users in less than ten months. Worldwide, the platform hopes to reach 148 million paying subscribers in the first quarter of 2019. It remains to be seen how the company in Las Gatos, California, will address the shortfall due to its users “parasites”.


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