Recent research underscores the massive revenue drain Netflix faces from account sharing practices.
The announcement hit like a bombshell: For weeks, Netflix has been cracking down on account sharing, issuing warnings to users engaging in the practice.
Affected users must verify their identity via a one-time code sent via text or email to the account owner—a restrictive but temporary measure. While it may feel heavy-handed, new data justifies the push: A detailed analysis reveals the enormous financial toll sharing takes on the streaming giant.
Jason Bazinet, a financial analyst at Citi Global Markets, examined the impact of account sharing. His findings are eye-opening: Netflix loses $6.2 billion annually.
In 2019, estimates pegged the yearly loss at 2 billion euros. Bazinet's analysis projects up to $25 billion lost in 2020 across U.S. services alone—an astronomical figure. Netflix's recent policies aim to stem this tide.
A 2019 Médiamétrie study highlighted how prevalent sharing is in France, with nearly 9 out of 10 French users accessing Netflix accounts together. In 84% of cases, it's among family members—"spouses, children, siblings, parents."
