Mediavision estimates sub sharing costs Swedish streamers $80m per year

Nordic-focused research company Mediavision estimates that streamer password sharing in Sweden is costing platforms around SEK900 million ($81m).

According to Mediavision sharing SVOD subs is a widespread phenomenon in Sweden, with around 1.4m SVOD accounts used by people outside of the paying household. “This has become a growing concern for streaming actors as it hampers growth,” says the research firm. “If (sharers) were transformed to paying customers, and if they paid the same average price as everyone else, Mediavision estimates the value of forgone revenues as SEK900m per year.”

Mediavision says several companies are now reviewing the possibilities of limiting sharing. “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. But Mediavision’s analysis also points to risks. A ban on sharing may mean that some paying households actually leave the service all together.”

Marie Nilsson, CEO of Mediavision, said: “Almost half of all SVOD households in Sweden share at least one subscription outside the home, which shows how widespread the phenomenon is. Many have made a habit of this and if forced to prioritise, 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.”