Sharing SVOD subscriptions is a widespread phenomenon, which has become a growing concern for streaming actors as it hampers growth. Several companies are now reviewing the possibilities of limiting sharing. Theoretically, those that share today could contribute to continued growth, if they were transformed to paying customers. If they would pay the same average price as everyone else, Mediavision estimates the value of today's forgone revenues to approximately SEK 900 million (excluding VAT) per year.
In Sweden, close to 1.4 million SVOD subscriptions were shared outside the paying household at the turn of the year. Almost half of everyone with a SVOD subscription shares at least one subscription with someone outside the household. If sharing was stopped, the SVOD market could potentially grow up to 16% compared to today, Mediavision notes. The number of subscriptions would then increase from today's 7.3 million to 8.7 million. Based on average household spend on stand-alone streaming subscriptions, the lost revenue is estimated to a value of close to SEK 900 million per year (excluding VAT).
Netflix was the first actor to take actions on account sharing, but Disney+ is also reviewing its sharing policy. For the companies, the hope is that this will accelerate growth, especially in households that have already shown interest in the services. However, Mediavision's analysis also points to risks, as a ban on sharing may mean that some paying households actually leave the service all together.
“Almost half of all SVOD households in Sweden share at least one subscription outside the household, which shows how widespread the phenomenon is. Many have made a habit of this and if the households are ‘forced’ to prioritize, the risk of services being opted out increases. However, it is likely that all actors will review password sharing, which will possibly lead to both increased customer movement and more customers for the SVOD services,” commented Marie Nilsson, CEO of Mediavision.
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