Netflix May Be Losing Millions To Account Mooching, Study Finds

The streaming space has quickly become crowded after going from general services like Netflix and Amazon to including ones like CBS All Access and the soon to be released Disney+. Despite all the competition, Netflix has maintained its dominance as the top streaming service in the world. However, according to a new report, the biggest threat to Netflix isn’t the competition but mooching.

Via TechCrunch, a new study from CordCutting.com reveals that one in five people today are using someone else’s Netflix, Amazon, or Hulu account. And of these, Netflix proves to be the longest at 26 months.

When the study was done, Netflix’s base price was still $7.99 and could save someone over $207 over that 26 month period. While that may not sound like much, the study claims those loses can add up. Account sharing could cost Netflix $192 million in monthly revenue, more than any other streaming platform.

That, in tandem with ballooning debt and fast spending, would typically spell trouble for most companies. Last year, it was reported that Netflix may have spent at least $8 billion on original content. But as a late 2018 report from CNBC showed, investors are happy because of Netflix’s focus on original content and being No. 1 in the streaming space.