Recent Study Reports that Account Sharing is on the Rise, Leading to a Loss of SEK 900 Million
The trend of sharing streaming service accounts among households is rising in Sweden. Recent findings by consultancy group Mediavision reveal that almost 1.4 million streaming subscriptions are used outside the primary subscriber’s home. This practice has led to an estimated annual revenue loss of around SEK 900 million.
Leading streaming platforms like Netflix have already initiated steps to curb this widespread sharing, with Disney+ Hotstar also indicating its intent to tackle the issue by implementing a new policy.
Despite these measures, Mediavision’s CEO, Marie Nilsson, cautions that a strict crackdown on account sharing might lead to unintended repercussions.
She highlighted that nearly half of Swedish households with a streaming subscription share their access with others. “Given the habit’s prevalence, enforcing stricter sharing rules might force consumers to choose, possibly leading to a decline in some services,” Nilsson said. “But on the brighter side, addressing password sharing might also result in heightened user mobility and potentially more subscribers for streaming platforms.”
If measures effectively limit account sharing, projections suggest that Sweden’s streaming market could see growth of up to 16%. This means the current 7.3 million subscriptions could rise to 8.7 million.
Based on average individual streaming subscription costs, the revenue lost due to sharing practices is estimated at nearly SEK 900 million annually.
Netflix’s Positive Growth with Password Restrictions
In May, Netflix introduced stricter password-sharing regulations for users in the US, UK, and over 100 other regions. Following this enforcement, the company reported an uptick of nearly 6 million subscribers in its Q2 2023 earnings announcement.
After witnessing its positive impact, Netflix decided to curb password sharing by implementing stricter user guidelines in India. Henceforth, a Netflix account is intended exclusively for single household members.
In an official communication, Netflix clarified, “A Netflix account is designated for a single household’s use. Members of that household can enjoy Netflix anytime and anywhere – whether at home, on the move, or during vacations. They can also leverage new functionalities such as Transfer Profile and Manage Access and Devices.”
Ragul Thangavel
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
Holding an Engineering degree, Ragul's career took an unconventional turn when he discovered his passion for writing, leading him to begin his journey as a content writer.
His career has been exclusively dedicated to the growth and development of startups, where he has played a pivotal role. His unique blend of technical knowledge and creative prowess has enabled him to drive innovation and success in every venture he has been a part of.
