Who are the Netflix subscribers who share their account?

The issue of account sharing between users and the repressive measures planned by Netflix have been animating the media since Netflix executives declared that more than 100 million households worldwide share their account, including 30 million in the United States and Canada. Since then, Netflix has launched an experiment in South America to charge a supplement of between 2 and 3 dollars for households that share their account.

While waiting to find out how Netflix will generalize this measure, Kagan provides interesting details on the profile of “sharers”. Three main conclusions emerge from this survey:

  • Kagan’s survey of US consumers showed that Netflix users who indicated sharing a login tended to be younger, less educated, and have lower incomes than other subscribers;
  • Recent subscribers, who signed up within the past year, are also younger, but also more diverse than long-term subscribers (over a year) or users who share their ID;
  • Users of shared access services tend to use fewer SVOD services than other users, while recent subscribers use the most

By analyzing the results in detail, Kagan makes it possible to profile the subscribers who share their account:

  • Users of shared connections on Netflix tend to be younger, mostly with Gen Z at 25%, versus 10% for long-time subscribers (over a year). Recent Netflix subscribers also tend to be younger than long-term subscribers, with Gen Z at 28% and Millennials at 36% of subscribers surveyed who said they had subscribed in the past 12 months.
  • Households without children accounted for a larger share of shared connection users, at 28% for single adult households and 46% for multi-adult households, compared to long-term subscribers, at 24% and 41%, respectively. Single adult households, with or without children, accounted for a larger share of recent subscribers, at 38% and 17%, respectively, compared to 24% and 7% of long-term subscribers.
  • Users of the shared connection are also more numerous among less educated and low income householdswith 36% having a high school diploma or less and 43% earning less than $50,000 a year, compared to 23% and 30% for long-term subscribers.
  • Most recent Netflix subscribers live in metropolitan urban areas (42%) or in suburban towns (44%).
  • New subscribers used more services (6.7), while those who said they received Netflix as a benefit for another service, including some wireless plans, used the fewest services (3 ,9). Those using a shared connection were just slightly more numerous, with an average of 4.1 services used in the household.
  • Including Netflix, all service users surveyed used an average of five SVOD services. Amazon Prime Video (66%), Hulu (53%) and Disney+ (47%) were the most likely to be used.
  • Netflix users who take advantage of this service as a subscriber are the least likely to indicate that they use several of these popular SVOD services, with Hulu at 43%, Disney+ at 27% and HBO Max at 25%. Most shared access users (84%) frequently watch videos from SVOD services (at least once a week), but they are less numerous than recent subscribers and long-time subscribers (90% and 91%, respectively).
  • Recent Netflix subscribers are the most likely to say they use a traditional streaming service in their household (74%), while those who share a login are least likely (51%).

In the end, Kagan analyst Brian Bacon concludes: “Netflix intends to crack down on password sharing in order to turn password sharers into paying subscribers. This will be difficult since shared login users tend to have less disposable income and are less engaged in streaming, especially compared to recent subscribers.”

Once the American observation has been made, it remains to be seen how Netflix will manage the subject, on the one hand in the United States where the sharing rate is particularly high (30 million out of 74 million subscribers) and in the rest of the world where ARPU is generally lower than in the United States.


Source: www.zdnet.fr

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