LRG: 27% of DTC Streaming Services Shared

DURHAM, N.H.—The sharing of streaming services is a hot-topic in the industry right now, and Leichtman Research Group is the latest to share details on consumer behavior regarding the trend. According to LRG’s recent study, 27% of the top 11 direct-to-consumer and streaming accounts are being used in more than one household.

LRG’s study found that 82% of U.S. households have at least one streaming service, with 51% of them having three or more. While 69% are fully paid and are not shared with anyone outside the household, 27% of them are (the other 4% represent DTC services that come with another service).

The 27% breaks down like his: 13% of services are used and paid for by those that also share them with someone outside the household; 12% are used in one household but are borrowed from another household that is paying for the service; and 2% of services are used by multiple households with them sharing costs. Overall, 16% of all households have at least one DTC service that is fully paid for by someone else.

The younger age group (18-34) is the most likely to use a DTC service someone else pays for, with 26% reporting that they do. For those over 35, only 12% say they use a service that they do not pay for.

PLUS: Report: 88 Million Streaming Accounts Being Shared

“Password sharing is prevalent throughout the streaming video industry. Over a quarter of DTC streaming video services are shared with others outside the household, including 12% of all services that are ‘borrowed’ from someone else’s subscription,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Yet, sharing of streaming services should not solely be viewed as lost revenue, as the ability to share with others is also part of the retention strategy for the services.”

LRG also looked at vMVPDs in its report, finding that 63% of 18-44 year olds have a vMVPD pay-TV service. Consumer satisfaction with these services is up, with the 77% reporting to be very satisfied, compared to 69% in 2018. In addition, just 13% are likely to switch from a vMVPD service in the next six months; that was at 27% in 2018.

There are still sharing issues with vMVPDs. LRG found that 20% of all vMVPD services are shared by multiple households, including 6% that are paid fully by someone outside of the household.

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