Megalith
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Digital video services are missing out on significant revenue because some people are too cheap to get their own account: polls claim that 21 percent of streaming viewers ages 18 to 24 access at least one digital video service (e.g., Netflix, HBO Now, Hulu) by using log-in credentials from someone outside their household at some time. Overall, 12 percent of adults said they did the same thing. It is estimated that streaming providers will lose $550 million in 2019 from password sharing, so a crackdown could be on the way.
Up to now, Netflix and other streaming networks have accepted some password-sharing, but they may face pressure from investors to change course if new sign-ups slow substantially, Wall Street analysts said. Revenue growth at Netflix is projected to drop from 31 percent in this year's second quarter to 19 percent in the second quarter of next year, according to Thomson Reuters I/B/E/S. "If Netflix goes from a 30 percent revenue growth story to a 10 percent story, there is absolutely going to be more focus on their leaving money on the table," said Justin Patterson, an analyst with Raymond James.
Up to now, Netflix and other streaming networks have accepted some password-sharing, but they may face pressure from investors to change course if new sign-ups slow substantially, Wall Street analysts said. Revenue growth at Netflix is projected to drop from 31 percent in this year's second quarter to 19 percent in the second quarter of next year, according to Thomson Reuters I/B/E/S. "If Netflix goes from a 30 percent revenue growth story to a 10 percent story, there is absolutely going to be more focus on their leaving money on the table," said Justin Patterson, an analyst with Raymond James.