As Netflix begins its password-sharing crackdown in the U.S., a new survey shows that nearly half of all the service’s users currently share their password — and making sharing more difficult is likely to result in cancellations or pushing some users to its ad-supported version.
The study, conducted by SambaTV and HarrisX, found that 51% of all streaming services subscribers share their account with others. For Netflix, the percentage is slightly lower, at 49%. (Disney Plus is at 48%.)
The reaction to an account-sharing crackdown varies by age. The study found that 37% of current Netflix subscribers said they would cancel their account if they could no longer share their password with people outside their homes. Among Gen Z respondents, the percentage was 52% and among millennials, it’s 51%.
Most of the people currently watching Netflix on someone else’s password say they would get their own account.
Of the 64% who said they would get a subscription, 39% said they would get the lower-priced, ad-supported tier, with the remaining 25% getting an ad-free version.
At its upfront, Netflix said that 25% of its new signups are picking the basic plan with ads and that 75% of ad-supported subscribers are between 18 and 49 years old.
“Data from Samba TV and HarrisX shows the crackdown on password sharing has the potential to hasten the growth of Netflix’s ad-supported tier as sharers are gently forced to migrate to their own accounts,” Samba TV CEO Ashwin Navin said. “Of those who currently use someone else’s Netflix account, almost 40% say they’d move toward the cheaper monthly subscription with ads, while only a quarter may sign up for their own ad-free experience.
“There's also an opportunity for Netflix to charge for these additional users. 4 in 10 subscribers say they’d pay up to an additional $10 per month to share their account with someone outside of their home,“ Navin said. “Implementing this new fee could quickly grow Netflix’s subscriber revenue.”
The study is based on a survey of 2,506 U.S. adults conducted from March 23 to March 27. The sampling margin of error is plus or minus 2 percentage points.
