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TV Tech
Phil Kurz

Borrowing Video Streaming Services Remains Popular Among Younger Adults

Remote and streaming content on a TV.

DURHAM, N.H.—While streaming video services like Netflix have worked to rein in password sharing, a new study from Leichtman Research Group (LRG) reveals nearly one-quarter of all the direct-to-consumer VOD streaming services measured are being shared by more than one household.

“Password sharing continues to be prevalent throughout the streaming video industry, despite recent efforts to limit it. This study found that 10% of all DTC services are borrowed from someone else, down from 12% in 2022,” said Bruce Leichtman, president and principal analyst for LRG. “Overall, 20% of households have at least one DTC service that is paid for by another household.”

Published in LRG’s new “Internet-Delivered TV Services 2024” study, its seventh annual, the research focuses on vMVPDs (virtual Multichannel Video Programming Distributors) and other DTC streaming video services.

On the plus side for service providers, of the households that subscribe to the 15 top DTC video-on-demand services LRG measured, 53% have signed up for four or more services. Nearly three out of four of them fully pay for those services and do not share them with those outside their households, the research found.

The study reveals that among the 23% of all DTC services used by more than one household: 11% are used and paid for by those who also share the with someone outside their home; 10% are used in one household but borrowed from another household paying for the service; and 2% are used by multiple households that share costs, it found. 

The research also found 4% of DTC services are not paid for because they are bundled with another service.

Subscription borrowing was more prevalent among younger respondents. A total of 17% of all DTC services are borrowed by those ages 18 to 34, compared to 7% among those 35 and older. The younger cohort accounts for 59% of all DTC services borrowed by an adult, according to the findings.

The efforts of Netflix to combat service borrowing appear to be paying off as just 10% using the service borrow it from someone else—down for 15% in 2022, it found.

Other findings of the research include:

  • Among adults ages 18-44, the mean number of DTC services is 5.1, compared to four among ages 45-54, and 2.8 among those 55 and older.
  • 6% of all households in the past year had Netflix, but currently do not—the is true for Hulu and the live pay-TV category.
  • Adults 18-to-44-year-old adults account for 57% of all those with a vMVPD pay-TV service.
  • 72% of vMVPD subscribers are very satisfied with their service, which is down from 79% in 2022.
  • 22% of all vMVPD services are shared by multiple households, including 8% of all vMVPD services that are fully paid for by someone outside the household.

The findings are based on an online survey of 2,546 U.S. adults 18 years of age and older. It was conducted in February, and the online sample has a statistical margin of error of +/- 1.9%. 

More information is available on the company’s website

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