There’s no denying that the television landscape is changing the days, with cable TV putting up dismal numbers (their worst ever, actually). But as more people migrate to streaming video, the scenery there is changing as well.
Nearly 3 out of every 4 (72% exactly) Americans who have cable also have access to at least one streaming service and 8% of cable subscribers plan to eliminate their service in the next year. But that doesn’t necessarily mean they’re paying for their streaming service. New numbers from a study conducted by Fluent show that the majority of Americans are sharing passwords to their streaming video services. Well over half of millennials (aged 18-34) – 60% – are either using someone someone else’s password or giving their password to someone else. And just under half – 48% – of non-millennials are doing the same.
Password sharing has long been an issue of debate among streaming companies, with customers seeming not to worried about legalities. Many executives, including Netflix‘s Reed Hastings, say it’s just not a big enough problem to worry about cracking down on. With nearly 130 million paying users, Netflix is apparently doing just fine (even if half of them share their account). HBO’s CEO also shrugged his shoulders at password sharing saying it “just has no impact on the business.”
The study also revealed that the main factor in what drives consumers to sign up for streaming video services is price, with 34% of Americans saying that low cost was the primary factor. That number jumps to 38% among millennials. When you take in to account that some streaming TV services start with prices as low as $20, it makes sense that price is the biggest issue. Convenience was the next biggest factor, coming in at just below 25%.
Customers are looking to streaming services for their television more than ever, and if some of them just happen to be using an account someone else is paying for, it seems everyone is ultimately OK with that.
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