Report: Password-Sharing Crackdown Is a Key Reason for SVOD Churn

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As streaming video providers crack down on password sharing, churn is increasing, according to a new report from Horowitz Research.

Fifty-two percent of those surveyed who view TV content have cancelled or lost access to one or more of their subscription video on demand (SVOD) services within the past year, the researchers found. Among respondents in that situation, almost 30% said not being able to share or borrow log-ins was a factor.

Other reasons for canceling or losing access to SVOD services are: cutting subscription costs (cited by 38% of respondents); cost increases (30%); not seen as a good value for the cost (26%); free trial ended (24%); show/sport season subscribed for ended (18%); person who shared access with respondent is no longer able to (17%); and could no longer share access with others (13%).

Thirty-five percent of respondents said they were paying more this year than last for services. The self-reported average spending on SVOD rose from $49.33 in the company’s 2021 study to $60.60 this year.

The researchers found that 59% of respondents are receptive to ads if it cuts cost, and almost one in three surveyed Netflix subscribers said they are on Netflix’s $6.99 ad tier.

Twenty-three percent of respondents plan to cancel one or more services in the coming months, an increase from 19% who planned to cancel last year. Netflix is the most likely to be cancelled, the report showed.

SVOD Password Sharing Crackdown

Cutting down on password-sharing is a necessity for SVOD providers, Adriana Waterston, Horowitz’s executive vice president of insights and strategy, said in a prepared statement.

“Given rising costs for streaming, consumers will become more and more judicious about how they are spending their money in the streaming ecosystem. To avoid churn, subscription streaming services will need to focus on smart windowing strategies to keep audiences consistently engaged with their content and be proactive about helping consumers downgrade to lower-priced and/or ad-supported tiers as soon as they see a subscriber’s viewership and engagement dropping,” Waterston said.

The Horowitz Research report, titled State of Media, Entertainment & Tech: Consumer Subscriptions 2024, had input from 1,405 people.

Horowitz Research is a division of M/A/R/C Research.