While analysts predict Netflix will survive or even thrive despite the shift to making free password-sharing users pay for the service, according to one study, the subscription video platform could take an eye-opening loss among young users who are subscription owners.
Among the 37% of current Netflix subscribers who said they would cancel their account if they could no longer share their password with people outside their homes, 52% were Gen Z and 51% were millennials, according to a survey from Harris X and Samba TV.
The research finds that overall, 51% of all streaming services subscribers share their account with others -- 49% for Netflix and 48% for Disney+.
But Netflix says not all is lost -- especially when it comes to gaining younger users for its new ad-supported service. Netflix recently said 25% of its new signups for “Basic With Ads” plan were users between 18 and 49 years of age.
Sixty percent of those who subscribe to at least one platform share a password with someone else -- 79% of Gen Z and 74% of Millennials. This compares to 52% of Gen Xers and 38% of Baby Boomers.
Netflix says password sharers would have the option of paying a $7.99 monthly fee for an ad-free Netflix option -- which would be around $7 less than the regular Netflix ‘Standard’ list price. Netflix's new “Basic With Ads” option is $6.99/month-- $3 less than Netflix least expensive ad-free plan.
The HarrisX/SambaTV data came from 2,500 U.S. respondents who were surveyed from March 23-27.