Skip to main content

Screen Wars Thought Leader Interviews are also available on

SpotifyApple PodcastGoogle Podcast
State of the Screens

Netflix is Watching Your Password Sharing

By March 31, 2022No Comments


Big news: Netflix is testing a feature that allows the primary account holder to add two additional households.

Big question #1: Where is Netflix testing this out?

Quick answer: Chile, Costa Rica, and Peru.

Why this matters: 11% of Netflix subscribers share their passwords with someone outside of their household.

Rate of password sharing according to Kagan Consumer Insights:
1) Netflix – 11%
2) Disney+ – 11%
3) Hulu – 8%
4) HBO Max – 7%
5) Amazon Prime – 5%
6) Average – 10%

Bottom line: Adding this feature could add $1.6B (↑ 4%) in revenue for 2023 vs. the current estimate of $39B.

Quote from Michael Pachter – Research Analyst @ Wedbush Securities:

“I suspect that a crackdown will result in 5 percent subscriber growth, partially or fully offset by an increase in churn, and it won’t impact financials much, if at all.  I think they are doing this now because growth has stalled to a crawl.”

Big question #2: Does each service handle password sharing consistently?

Quick answer: Each service has its own standard for the number of profiles and/or simultaneous streams.


By the way: Netflix ran a test in 2021 that contained a warning for accounts suspected of borrowing login information.

Flashback: Netflix, HBO and Cable Giants Are Coming for Password Cheats

Alternative take: Matthew Ball provides a smart use case for why password sharing may be driving higher revenue.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.