Netflix is loosing about $192 million per month. A MONTH. Netflix will probably start cracking down.
1 out of 5 users on Netflix are bumming their binging from a friend or family member. Sharing the same account is fine if you live in the same house, but when Jimmy is at college using his parents account, Jimmy is breaking some rules.
Hulu and Amazon Video are also impacted, according to a new study from CordCutting.com, but Netflix is the most abused. 48% of the Netflix freeloaders use their parents’ login, while another 14 percent use their sister or brother’s credentials, the firm found.
Netflix spent $12 Billion on creating their own content in 2018, and looking to increase that amount to $15 Billion. This money brings you content like ‘Stranger Things’, ‘Orange is the New Black’, and ‘Roma’. As an aside, it appears that Netflix even spent $60 million to get ‘Roma’ Best Picture at the Oscars. The point: Netflix spends a LOT of money for their viewers and they lose almost $2.3 Billion a year when people share accounts inappropriately.
So what would happen if Netflix pulled the plug on all this sharing? It appears that if moochers lost access to their shared Netflix login, about 59 percent of people would be willing to pay for their own subscription. This would mean that they would make about $1.2 Billion/year more than the do currently all else staying the same.
It’s only a matter of time until Netflix cracks down. But until then, I’m going to keep using my mom’s account. Thanks mom. 🙂
Sources: https://cordcutting.com/research/subscription-mooching/, https://variety.com/2019/digital/news/netflix-content-spending-2019-15-billion-1203112090/, https://www.vulture.com/2019/02/how-netflix-tried-and-failed-to-buy-a-best-picture-oscar.html