Skip to main content

A lot of people share Netflix accounts, and that's an issue

Every new and widely used technology brings new challenges with it, and TV streaming is no different. According to a new report from Dallas-based market research firm Parks Associate, more than 10 per cent of households in the U.S. that have a broadband connection and watch a subscription streaming service like Netflix or Hulu Plus share an account with someone else.

Or, to be more precise, they use someone else's account.

"This finding equates to 11 per cent of all households that are relying exclusively on shared accounts when using subscription OTT services.“

Here's how some numbers break down: 11 per cent of Netflix subscribers, 10 per cent of Hulu Plus subscribers, and 5 per cent of Amazon Prime Instant Video subscribers are using an account paid for by someone else.

When it comes to demographics, it's the younger audience that's likely to share an account, with 22 per cent of those 18-24 who use an OTT service (over-the-top) use a subscription paid by someone outside of their household.

“OTT video accounts for a disproportionate amount of content consumed when compared to expenditure—over one-third of video consumed per week is OTT, but it is only 9 per cent of the household video budget,” said Brett Sappington, Director of Research, Parks Associates. “Account sharing is part of the larger problem in monetising the strong consumer demand for OTT content“, he said.

This research comes at a time when voices saying that traditional TV is losing ground against streaming services are getting louder.