When Is Sharing A Log-In For Streaming A Good Thing?

Getting the word out there is good business -- especially when it comes to entertainment content.

Social media naturally helps. And recent research reveals that Netflix is benefiting from this big time.

At the same time, Netflix may not be spending at the same level of paid-advertising/marketing dollars as its rivals compete with tits video dominance.

One secret to Netflix's success: A golden trove of server data determines what its viewers have seen and what they might be interested in for the near-term.

Social media seems to have given Netflix an extra boost when it comes to users sharing promotional and other content.

What sharing isn’t good news? Well, you probably know where this is going: login/password information. Something one Citi Corp. analyst says are hitting streaming companies right in the subscription face -- around a collective $25 billion in revenue lost annually.

And for Netflix, that comes to $6 billion a year -- if projections are true. Not chump change, especially in light of Netflix's 2020 revenue: $25 billion.



The Leichtman Research Group says 27% of all paid video service U.S subscriptions are shared with others outside the household. Around 16% of U.S. households use at least one subscription streaming video service they don’t pay for.

Netflix recently said it would crack down on this trend. The key here is what specific sharing of login/password info should streamers crack down on.

Is it OK if a high-school student living at home uses a shared login/password to a Netflix subscription her parents pay for? Probably. What if that student heads off to college, some 500 miles away and continues to user the same account? Hmmm... that’s the fuzzy line.

Does Netflix want to incur the wrath of young potential longtime video consumers? And what about now possible angry parents?

Netflix needs to determine who and what to cut — and what to keep. This includes keeping those loyal viewers/customers who might want share all their enthusiasm with others.

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