According to a recent survey, 41% of consumers in India have no problem sharing their OTT streaming platform credentials (username and password) with their near and dear ones. This has resulted in streaming platforms increasingly losing revenue.
The OTT momentum became a revolution in the pandemic period, with more TV consumers moving to streaming platforms.
Several on-demand services in India, including Netflix, are losing up to 50% of their revenue as users share account details with relatives and friends. As a result, the OTT companies are now looking at methods to prevent leakage of revenue.
OTT platforms allowed account sharing in their early days in India to attract subscriptions as it made sense to give a bundled offer as a family pack. After that, however, users started using this facility beyond just immediate family, sharing it as a group subscription plan with friends and relatives.
The survey also conveys that account sharing impacts the earnings of any OTT platform. As a result, platforms now need to take a strict look at pricing, strategy, and access to streamline and solve this problem.