A study estimating the (astronomical) cost of participation accounts

The announcement caused a lot of reactions. A few weeks ago, we learned that Netflix was trying to bolster its strategy to fight password sharing between users. Testing is currently underway and some have received this message as a warning: If you do not live with the owner of this account, you must have an account to continue watching However, they are not blocked and can reconnect via a code sent via email or SMS.

“Combating fraud should be a priority for our shareholders”

In fact, it looks like the streaming platform has a lot to lose with this practice. According to Citi Global Market analyst, Jason Basinet, this is causing an astronomical deficit for Netflix. It is estimated that the company is losing about $ 6.2 billion annually. In detail, the expert predicts a cumulative loss of $ 25 billion in 2020 for the United States alone for all services.

In a note consulted by our colleagues from Media Play NewsDefines his idea: As broadcast platforms are becoming more and more important, combating this theft will be of increasing importance to shareholders. ยป.

Password sharing is said to be the trend of the majority and in a survey in the US, 76% of Netflix customers said they did so with family or friends who live outside of their homes.

However, the broadcast service should be cautious about this. Last week we reported this latest survey by Express VPN among US consumers. Of the 78% of Netflix subscribers who say they share their accounts, 54% threaten to cancel their subscription if the service is less tolerant of the practice.

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Therefore, Netflix will have to make a careful trade-off between the cost of sharing accounts and the risk of disappointed subscribers leaving. For now, nothing has really been done and the test indicates a kind of medium that puts pressure on the scammers, while maintaining some form of tolerance.

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