According to a recent survey, nearly one-third of Netflix subscribers do not pay for the service accessed and the company is not concerned about it.
Netflix Inc. is available to nearly 75 million customers in 190 countries throughout the world. The company has made itself a global TV network in a short span of time. It is certainly leading the TV industry with its magnificent performance in the past two to three years. Netflix offers three subscription plans for its customers to choose from where the only difference between them is the option of HD streaming and access the platform on multiple screens simultaneously.
Not all viewers pay for their Netflix monthly subscriptions. Quartz recently asked a research firm Survata to conduct a survey on its behalf to find out how many users do not actually pay for their membership. The survey showed that almost 31% of the US streaming subscribers who access the platform do not pay for it. These subscribers actually mooch off someone else’s subscription; in other words, a single account is shared between two to four people usually.
According to the survey, young people are the biggest malefactors as nearly 69% of the people who are aged between 13 and 17 do not pay for their subscriptions and actually are the biggest moochers, followed by 50% people aged 18 to 24 who are moochers as well.
Survata surveyed a group of 2,255 US Netflix subscribers in January. The only question of this survey was if the subscribers paid for their memberships or shared an account with others. Two of three subscription plans allow two or more users to share an account. The $8 plan allows one more user to use the same account information and access Netflix simultaneously whereas the $12 plan allows up to four people to stream on one subscription simultaneously.
Out of 2,255 participants, 69% stated that they pay for the Netflix membership. On the other hand, 26% participants said that they use an account of one of their family members and 5% use account of their friends.
Obviously, if ‘mooching’ is stopped, it will not only benefit the company but the streaming industry as well. However, Netflix does not care about password sharing and it is not concerned about it as well. The geo dodging activities do bother the streaming service provider, but it considers password sharing as a ‘positive thing’, as said by the CEO Reed Hastings at the CES 2016 event. The streaming industry loses almost $500 million annually due to password sharing activity.
The CEO further added that at this time, many of the young people are ‘moochers’ as share an account of either family or friends but the same people go on to become a paid member as they get older and have their own money to pay for the subscription.
Richard Plepler, CEO of HBO, also said that his company is not worried about the ‘moochers’ of HBO Go as it does not negatively impact the business. He added that the company considers it as a terrific marketing vehicle.