Poll shows freeloading young adults hurting media firms (VIDEO)
NEW YORK, July 13 — A Reuters/Ipsos poll found more than a fifth of young adults borrow passwords to stream shows. Fred Katayama reports that robs media companies of potential revenue.
Many young adults are freeloading when it comes to streaming. A Reuters/Ipsos poll found more than a fifth of them borrow passwords from people who don’t live with them to stream shows. Over one-tenth of adults say they do the same thing.
That means media companies are being deprived of revenue just as digital viewership explodes. Analysts say subscription revenue could come under scrutiny as the companies start reporting quarterly earnings.
Ross Gerber of Gerber Kawasaki: “They’ve been pretty liberal about the sharing, and I think it’s smart business. But over time, I think these companies will probably very subvertly and quietly do things to try to make it harder to use other people’s passwords and things like that, so that they can get more signed up customers.”
Netflix declined to comment.
Consulting firm Parks Associates estimates password sharing will rob streaming providers of more than half a billion dollars in revenue in 2019. — Reuters