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Netflix password sharing costing company $135 million monthly

Who would have guessed the Netflix password sharing problem would be so costly?

Generation X and Baby Boomers can breathe easy. Millennials are the main culprits according to Magid’s CNBC survey. A staggering 35 percent of Millennials are sharing passwords across streaming services. Not content with living in parents’ basements. They’re on other people’s Netflix accounts too!

What‘s Netflix doing about it?

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Not much if you take their words at face value. But it’s easy to read between the lines of what Netflix’s Chief Product Officer did say during a Q3 revenue call.

“We continue to monitor it so we’re looking at the situation” and “we’ll see those consumer-friendly ways to push on the edges of that.”

Greg Peters, Netflix Chief Product Officer

What this says to me is that they’re going to add new payment plans for sharers. Then watch to see if it helps or hinders that $135 million monthly loss. Sounds painless. It won’t be.

Why they should stop Netflix password sharing?

Netflix and all streaming services have to stop password sharing. We’re entering a new age of entertainment and sharing a password is the same as streaming piracy. Or that’s how it will end up classified.

How services deal with this is the $135 million question. Get it wrong and it will drive customers away. This is why Netflix won’t pull the plug — it’s a buyers market right now.

While we wait for Millennials to ruin it for everyone, try out Hoopla. The 100 percent free streaming service with a great selection of movies.

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