Netflix piracy costs the company an estimated $192 million per month due to password sharing, with Amazon losing $45M and Hulu $40M, new report finds…
Approximately 1 out of 5 streaming consumers are mooching off someone else’s account, according to a new study by CordCutting.com. This figure includes the three most popular services, Netflix, Amazon, and Hulu.
Netflix Piracy Costs the Streaming Service about $192 Million per Month, Study Finds
The CordCutting.com study also reveals Netflix is the most victimized by freeloaders, with a pirate run of 26 months. Comparatively, Amazon Prime sponges hang on for 16 months, while Hulu leeches stay around for 11 months.
Calculated at the old base price (the study ran prior to the January price increase for Netflix), of $7.99 per month, cadges save an estimated $207.74 over a 26 month period in free content consumption.
When scaled up, that figure balloons immensely. It adds up to as much as $192 million per month — about 4.26x that of Amazon and Hulu, which lose $45 million and $40 million, respectively.
Unsurprisingly, millennials make up the largest mooching demographic, 18 percent for Netflix and 20 percent for Hulu. A full 48 percent are children who use their parents’ logins, with 14 percent borrowing credentials from siblings.
Altogether, the steal tallies up to $277 million per month or $3,324,000,000 ($3.324 billion) per year in loses.