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Netflix might be losing $2.3 billion in revenues yearly from piracy, study claims

In a study done by CordCutting.com, 1 in every 5 people is using someone else’s account to stream videos from Netflix, Amazon, or Hulu. The study also shows that Netflix is pirated for the longest period of 26 months, followed by Amazon Prime for 16 months and Hulu for 11 months. The study also shows that Netflix freeloaders often use their family’s account to log in instead of a friend. As per the study, 48 percent use their parents’ login, while another 14 percent use their sister or brother’s credentials.

The report adds that the company might be losing in the range of $192 million per month from piracy which is much greater than $45 million per month for Amazon and $40 million per month for Hulu.

The report further notes that millennials are highly active when it comes to freeloading. They are the largest demographic pirating Netflix at 18 percent and Hulu at 20 percent.

Some critics argue that those who pirate will never be paying customers and it can be compared to Napster’s mp3 download back in the day. But some of the freeloading population claim that they might think about paying once they lose the access.

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.

Hulu is trying its best to make the service appealing to its customers and with a subscription fee of $5.99 per month, it is an enticing offer which is hard to resist. But Netflix seems to be following its own path and has raised prices this year so its base plan is a dollar more at $8.99 per month, and its most popular plan now priced at $12.99 per month.

Source: TechCrunch

Image: Shutterstock

Netflix might be losing $2.3 billion in revenues yearly from piracy, study claims
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