NEW YORK — Netflix officials said they’re “aware” and “monitoring” the number of users who are avoiding monthly subscription fees through password sharing.
During the company’s quarterly earnings call last week, Netflix product chief Greg Peters acknowledged the streaming giant is watching the number of users sharing their passwords.
"We continue to monitor," Peters said, according to the New York Daily News.
“We’ll continue to look at the situation and we’ll see those consumer-friendly ways to push on the edge of that, but we’ve got no big plans at this point in time in terms of doing something different there,” he said.
It's estimated that Netflix loses more than $135 million every month due to just under 10% of its subscribers sharing their passwords, according to research firm Magid.
— UberFacts (@UberFacts) October 24, 2019
A CNBC survey found 10% of Netflix subscribers don't pay a monthly subscription fee, including 35% of millennials, 19% of Generation X and 13% of baby boomers, WGN-TV reported.
The consumer research company Magid estimated that of the streaming service's 137 million customers, almost 14 million are not paying a monthly fee at a cost of about $135 million to Netflix.
Current subscription rates start at $8.99 for a basic plan and range up to $15.99 for premium users.
Calm Down! Netflix Is Not Really Planning To Crack Down On Password Sharinghttps://t.co/sGtyUD9TdL pic.twitter.com/HgNQ6j11Mf
— IFLScience (@IFLScience) October 23, 2019
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