NEW ROCHELLE, N.Y.—With an increasing number of streaming services following Netflix’s and Disney+'s lead in cracking down on password sharing, one in three U.S. TV content viewers (33%) are still borrowing log-in credentials or sharing the costs of at least one streaming service they can access, according to findings from Horowitz’s "State of Media, Entertainment, and Tech: Disruptions" report.
The study found that the main drivers to borrowing and share are: “Someone I know already had an account”; “I can’t afford it at this time”; and “I am just doing it to access a specific show/type of content for a short period of time.”
The study also found that almost one in four (23%) viewers who currently borrow or share a password are “very worried” that the streaming services they use will start implementing measures to prevent sharing; another 26% are somewhat worried about it.
Horowitz is, however, reporting that about half of those who borrow the log-in or share the cost for Netflix, Max, Disney+, Hulu, Amazon Prime Video, and Paramount+ would be willing to pay the full price for those services if they were not able to share anymore. Sharers of smaller, less robust services are less likely to pay full price for those services.
“Profitability continues to be a concern in the streaming space, and password sharing clearly plays a role in that. It is inevitable that services will need to find new revenue sources, whether from subscriptions or ads or both,” notes Adriana Waterston, executive vice president of insights and strategy lead for Horowitz Research. “That said, as more services crack down, we can anticipate that some consumers will consider churning off some of the services they share if they don’t see the value for their money. In that sense, the bigger services are risking less by cracking down than the smaller services, because the more robust and varied their content offering is, the more their perceived value.”
In the context of these recent crackdowns, Horowitz asked TV content viewers about the ethical considerations of password sharing. Three in 10 consumers believe that password sharing is unethical in any circumstance, whereas almost six in 10 consumers do not see an issue with it. Among those who are okay with password sharing to some degree, over four in 10 (42%) feel it is acceptable as long as it involves sharing with their own family members, even if they do not live in the same household. A smaller percentage of consumers (16%) think that password sharing is acceptable with everyone, including individuals who are not family members.
In terms of the ethical considerations, the study found that there are nuances by age.
By far, 18-34 year-olds are much more likely than their older counterparts to password share (54%, compared to 37% among 35-49 year-olds and 17% among 50+ year-olds). They are also the least likely to have ethical concerns about it: only 13% of those 18-34 think it is unethical, compared to 24% among 35-49 and 41% of 50+ TV content viewers. Younger viewers are also more likely to believe it is OK to password share even with people who are not family members.
The full "State of Media, Entertainment, and Tech: Disruptions 2023" report tracks the evolving market for new and potentially disruptive technologies that could be game-changers, including over-the-air (OTA) antennas, wireless 5G home internet services, and piracy and password sharing. The survey was conducted in September 2023 among 1531 adults 18+ who have a role in decisions regarding TV and internet services in the home. Data have been weighted to ensure results are representative of the overall U.S. population. The report is available in total market, FOCUS Latinx, FOCUS Black, and FOCUS Asian editions.
More information is available here.
