One-third of US Netflix users share their passwords, survey finds

About a third of U.S. Netflix users share their login credentials with others, according to new data from Leichtman Research Group. The research firm's online survey of 4,400 consumers confirms what the company has concluded in recent years. While 64% of respondents said they only pay for and use Netflix in their own homes, 33% said there is some form of sharing.

Netflix, which has about 74 million subscribers in the U.S. and Canada and has penetrated nearly 70% of U.S. broadband households, recently gradually raised rates to continue funding its $18 billion in annual programming spending as subscription growth in the region has flattened recently.

The streaming giant has also taken some steps to combat password sharing, which has cost the company billions of dollars in revenue. But the process is delicate because the company has no moat in place as it grew into a giant in the media space. There is a risk of taking actions that could be seen as overly punitive to customers.

Earlier this month, Netflix announced a monthly fee test of password sharing in three regions outside the United States. The blog post explained that the rise of password sharing between households impacted its ability to invest in great new TV and movies for members. Of course, all streaming players face password challenges. Newer Netflix challengers like Disney+ and HBO Max have taken a fairly laissez-faire approach to sharing, as have incumbents Amazon Prime Video and Hulu.

The study found that of all direct-to-consumer services, 29% are shared with someone outside the household, while 12% are paid for entirely by someone outside the household. Not surprisingly, younger viewers are most likely to borrow login credentials. The study found that 34% of adults aged 18 to 34 have at least one streaming service that is paid for entirely by someone else, compared to just 14% of those aged 35 and older.