Password sharing costs Netflix billions — and that's before the price increase

Password sharing costs Netflix billions — and that's before the price increase

5 years ago
Anonymous $Dftgs0JzgE

https://finance.yahoo.com/news/password-sharing-costs-netflix-billions-thats-price-increase-160028395.html

Looking at existing user numbers, the company estimated that for Netflix, about 24 million people who used the service didn’t pay for it. The missed opportunity of charging them the base cost of a subscription, which is $7.99, was estimated to be at least $2.3 billion of revenue lost yearly. Other streaming services lose around a quarter of what Netflix does from password sharing." data-reactid="25">Looking at existing user numbers, the company estimated that for Netflix, about 24 million people who used the service didn’t pay for it. The missed opportunity of charging them the base cost of a subscription, which is $7.99, was estimated to be at least $2.3 billion of revenue lost yearly. Other streaming services lose around a quarter of what Netflix does from password sharing.

It’s unlikely that Netflix CEO Reed Hastings will start policing password sharing. At the Consumer Electronics Show in Las Vegas last week, he said that he saw password sharing as the first step for the company to win over another user." data-reactid="38">It’s unlikely that Netflix CEO Reed Hastings will start policing password sharing. At the Consumer Electronics Show in Las Vegas last week, he said that he saw password sharing as the first step for the company to win over another user.