Streaming Services Lost $9.1 Billion in 2019 Due to Password Sharing

The number of streaming services has begun to ramp up to an almost overwhelming amount as of late. As new platforms emerge all the time, one would almost need to create a spreadsheet in order to keep up. Add to that, there are the increasing costs associated with owning each one. Thankfully, most streaming services have been fairly lax when it comes to password sharing.

However, a report has shown that in 2019, streaming services lost a collective total of roughly $9.1 billion USD because due to users sharing their passwords with friends, family, and in some cases, the piracy community. A recent article written by The Hollywood Reporter notes that password sharing can have negative long-term consequences for the ecosystem. According to Parks Associates, a research firm, that loss could reach $12.5 billion by 2024.

When speaking to Jon Giegengack, principal at Hub Entertainment Research, Giegengack touched on the fact that the younger generation, one that grew up in the boom of streaming services, are much more likely to share their passwords. In a study conducted by Hub, they found that 60 percent of the users between the age of 13-24 have shared their log-in credentials, while only 16 percent of users over the age of 35 have shared theirs.

Giegengack also said: “There is a cultural shift particularly among young people, where sharing things with people you know, or them sharing with you, is an accepted way of doing business, and it is an attitude that is going to impact how they consume lots of things, not just TV and movies.”

Although things could change on a dime at any moment, services such as Netflix, Hulu, Amazon Prime, and Disney+ have taken a backseat when it comes to allowing users to share their passwords with anybody and everybody. Recently, the Netflix India account sent a tweet, almost encouraging the act. In response to a now-deleted “free Netflix subscription” scam, the account responded by saying: “This is absolutely fake. If you want free Netflix please use someone else’s account like the rest of us.”

We don’t know what ramifications password sharing will have on the future. Only time will tell.