This is what emerges from the Leichtman Research Group's annual study on Internet pay-TV in the United States. And the phenomenon affects 29% of the entire subscription video on demand sector 30 Mar 2022 Antonello Salerno
The Leichtman Research study is limited to the US context, but may be indicative of the widespread phenomenon of password sharing, the sharing of login credentials among multiple users of Internet video services. According to the data of the fifth annual survey "Internet-delivered Pay-TV services 2022", carried out on a sample of 4,400 American families, 33% of Netflix users share their credentials to access the service with someone outside the family, while 64% keep their username and password for themselves. 15% of Netflix subscriptions are also used free of charge by families who "borrow" credentials from friends or acquaintances, another 15% is paid by those who then pass the credentials to others, while only in 3% of cases costs of the service are divided among the users concerned. More generally, the research shows that 83% of Americans have subscribed to at least one Pay-TV service via the internet among the 15 main ones available in the country, which can be divided between "direct-to-consumer" and "subscription video on -demand ". Of this total, 63% includes Netflix among the services available to them. The phenomenon of password sharing is in any case very widespread even among those who are not subscribers to Netflix, so much so that 29% of the total of those who subscribe to "direct-to-consumer" services do password sharing outside their own family, and that 12% of these passes are paid for in full by someone outside the household who uses them. The phenomenon of loaned passwords is more widespread among the youngest (34% of the total) among those between 18 and 34 years old), while it concerns only 14% of the over 35s. "The sharing of credentials is a very widespread phenomenon and affects all streaming services - explains Bruce Leichtman, president and principal analyst of Leichtman Research Group - Sharing helps to extend the user base and build customer loyalty, but on the other hand it contributes. to create a gap between the people who actually use the service and those who pay for it. For example, about two-thirds of American households say they have Netflix, but this figure also includes 10% of households who don't pay for the service because they 'borrowed' it from someone else ". Index of topics • Netflix prepares for counter-moves • The situation in Italy: the Dazn case Netflix prepares for counter-moves To contain this phenomenon, Netflix has started experimenting with new solutions, which have been tested in Chile, Costa Rica and Peru. We are talking about the possibility of legally allowing the subscription to be extended to someone outside the family by paying a surcharge, up to a maximum of two people, with an increase of 3 dollars per user, while in the study phase there would also be the possibility of multi-factor authentication for subscribers, who may be forced to type in a code received via email or SMS before starting to view content. The situation in Italy: the Dazn case The phenomenon of credential sharing had its moment of notoriety also in Italy, and concerned the Dazn live streaming service. The company, which holds the rights to broadcast the matches of the Serie A football championship for the three-year period 2021-2024, today allows two simultaneous accesses to the service (even if the Conditions of use of the service specify not to share one's credentials) but has announced that it will review this policy from next season to combat the phenomenon of contractual abuses. The issue had also been at the center of discussions with Tim, Dazn's technology and distribution partner, who expressed his desire to review the economic terms of the collaboration. Among the possibilities at the Dazn studio there would be precisely that of allowing multiple accesses to the service with new subscription formulas, which provide for a surcharge for those who choose this method.
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