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Netflix Password Sharing & Goodwill

This is JoTo PR Disruptors’ commentary on Fortune’s article People Sharing Passwords Are a Growing Problem for Netflix

According to Fortune, more than 1/5 of young adults who stream TV shows borrow logins and passwords from people who do not live with them. Reuters/Ipsos says that these companies are, obviously, missing out on significant revenue. 1

Putting aside the security aspect of sharing information that is attached to your financial records—I think there is more to this story than just “lost revenue.”

89% of all streaming households use Netflix.2

 That is just north of 50 million American households… and 25 million homes subscribe to Amazon Prime Video.

That is a ton of people.

I don’t think you can sit there and think that Netflix, or Hulu, or Amazon don’t know they are losing subscriber dollars by allowing people to “share” their passwords with people. They do a small amount and talk about how it isn’t safe and the like, but they know they can’t have real control over what people do with their information.

Though, and especially in, an age where people are furious with cable companies, allowing this feature builds goodwill with their viewers. Having a Netflix account is one of the easiest things to have in this age on the internet and it’s because of that ease of use coupled with the ability to have your account not just with whoever—but on whatever devices you own (I swear, our microwaves will have Netflix on them soon) so the ease of use for their service builds goodwill and credibility with their viewers.

That’s way more than DirectTV or other cable providers can say. (Just spend some time on one of their Twitter accounts, you’ll see vitriol like you’ve never seen.)

I have to think that Netflix knows about this goodwill. They are one of the most powerful companies in entertainment right now and it’s because people trust them, believe in their service and are happy with how they’re being treated.

The world of entertainment has been changing throughout the last couple of years and Netflix has been at the top of the disruptive game since the change.

1 Reuters (July 11) “People Sharing Passwords Are a Growing Problem for Netflix” Web. July 18 2017

2 C. Wang (July 2016) “Overwhelming majority of people watching streaming services still choose Netflix” Web. July 18 2017


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