Netflix May Be Losing $192 Million Per Month From Piracy, Study Claims

An anonymous reader quotes a report from TechCrunch: As many as 1 in 5 people today are mooching off of someone else's account when streaming video from Netflix, Hulu or Amazon Video, according to a new study from CordCutting.com. Of these, Netflix tends to be pirated for the longest period -- 26 months, compared with 16 months for Amazon Prime Video or 11 months for Hulu. That could be because Netflix freeloaders often mooch off their family instead of a friend -- 48 percent use their parents' login, while another 14 percent use their sister or brother's credentials, the firm found. At a base price of $7.99 per month (the study was performed before Netflix's January 2019 price increase), freeloading users could save $207.74 over a 26-month period. At scale, these losses can add up, the study claims.

The report estimates Netflix could be losing $192 million in monthly revenue from piracy -- more than either Amazon or Hulu, at $45 million per month and $40 million per month, respectively. Millennials, not surprisingly, account for much of the freeloading. They're the largest demographic pirating Netflix (18 percent) and Hulu's service (20 percent). But oddly, it was Baby Boomers who were more likely to borrow someone else's account to access Amazon Prime Video. According to the study, 59.3 percent said they would pay for Netflix (or around 14 million people), contributing at least $112 million in monthly revenue, if they lost access. And 37.8 percent, or 2 million, said they'd pay for Hulu; 27.6 percent, or 1 million people, said they'd pay for Prime Video.

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