Survey: 56% of Viewers Still Use Someone Else’s Streaming Account as Password-Sharing Rules Spread
Disney+ may face a large cancel reaction in the near future, as 44% of its subscribers said they’ll cancel if stricter password-sharing rules are enforced.
The understandable disappointment by customers at the spread of rules against password sharing is not stopping streaming providers from enacting such rules. Disney became the latest company to update its streaming user agreements, forbidding subscribers to Disney+, Hulu and ESPN+ from sharing their login information. A new survey from Forbes indicates these changes have not created a marked shift in customer behavior so far, as 56% of respondents said they still use a streaming account someone else pays for.
- Despite the high number of sharers, 68% of streaming customers pay for their streaming services by themselves.
- The survey notes that 90% of customers say they’ll cancel an account if password-sharing rules are enforced.
- Netflix and Disney streamers are underway on password-sharing restrictions, while Paramount+ has signaled no such rules are forthcoming.
The Forbes survey contained much information that streaming executives may find consequential. As each streaming service tries to crack the formula for profitability, many believe that cracking down on password sharing and encouraging former sharers to sign up for their own accounts is a critical step. If Forbes’ survey is accurate and 56% of viewers are sharing an account someone else pays for, there is indeed a large untapped customer base for streamers to pursue.
Forbes also found that 68% of respondents said they pay for at least one streaming service completely on their own. Around 30% said they split streaming costs among multiple people, paying for some services themselves while sharing the account of a friend or family member on other streamers.
Perhaps most importantly, the Forbes survey states that 90% of streaming subscribers claim they would cancel their subscriptions to their streamer of choice if that platform cracked down on paid sharing. Disney+ leads all streamers with the largest percentage of customers who say they would unsubscribe after a password-sharing crackdown, with 44% of respondents willing to leave their account behind.
Which Streamers Are Cracking Down on Password Sharing?
Disney has announced that it will begin actually enforcing its password sharing rules for Disney+, Hulu and ESPN+ this summer, and paid sharing options will roll out later in 2024.
Netflix has signaled its satisfaction with its password-sharing rules thus far, suggesting that the cancel reaction for Disney+ won’t be quite as high as Forbes’ survey would indicate. In the fourth quarter of 2023, Netflix announced that 40% of total new sign-ups were for its ad-supported plan, a big indication that it was capturing customers who were formerly using someone else’s login information.
Not all streaming services are aligned on the notion of cracking down on password sharing, however. In November, Paramount Global CFO Naveen Chopra stated that while that streamer would likely increase its prices in the near future, hard rules against sharing accounts were not likely.
“Right now, we don’t see [customers sharing accounts] as a major headwind to our growth efforts,” Chopra said. “Obviously, something that we will continue to monitor. And the good news is, I think there’s a template for how we could address that in a value-accretive way. But right now, we’ve got really powerful growth drivers.”
Other streamers are still figuring out their plans. Max has not announced whether it will crack down on password sharing, nor has Prime Video. In The Streamable’s opinion, it’s likely that both services will introduce rules against sharing accounts in the near future, as each is highly motivated to achieve profitability. According to the latest Forbes survey, they’ll affect a large number of viewers if they do, as more than half of streaming audiences still use someone else’s password to access a streaming service.
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