The impact of password sharing results in the loss of billions in potential revenue. In a study by Parks Associates, it is estimated that in 2021, password sharing could have resulted in $9.9 billion in lost revenue for streaming services.
Password sharing is a widespread practice, particularly among streaming services. Looking at a survey from 2019, conducted by Magid, we can see that roughly 35% of millennials are sharing passwords for different streaming services. When we look at Gen Z, this figure jumps to 42%. From Netflix to Spotify, account sharing is a prevalent issue among almost all streaming services.
With the increasing concern over loss in revenue, many streaming services have taken decisive action against the issue, and we are seeing a password sharing ban across multiple streaming services. In 2021, Netflix began to test a feature that prompted users to verify their account through email or SMS if they were listed as not being in the same household as the account holder. Since this point, Netflix has seen strong earning reports, which are believed to be a direct result of their mission to upgrade users to advanced plans, notably plans which allow users on more devices at a higher subscription cost.
Redfast offers an effective solution to this issue of password sharing. With our proven success in digital customer engagement, our platform can help you to prevent password sharing for your subscription services.
Redfast has been a game-changer for our customer retention efforts. With their expert guidance, we've experienced an immediate impact in preventing churn and reactivating subscriptions. Thank you, Redfast! Redfast's Guides feature has proven to be a transformative tool in our efforts to boost user retention. It has enabled us to launch step-by-step campaigns that optimize user behavior for engagement.
Sarah Hoffman
Senior Director, Growth Marketing
Redfast has been a great partner to our streaming business. Using their tools, we are seeing a 12% uplift in saving users with billing issues and 9% lift in saving users who intend to cancel. They held our hand throughout the set-up process but also taught us how to use the tools so that we can now launch new prompts, create A/B tests, and update existing prompts by ourselves. The tool is great, but the partnership with the Redfast team is what really tips the scale. I highly recommend using Redfast for your Lifecycle/Retention needs.
Kim P
Senior Director, Engagement
Redfast is the only user engagement platform that detects password sharing in realtime. Through the use of advanced fingerprinting technology the system allows you to detect password sharing as it is happening as well as set a threshold for action.
Redfast’s platform allows you to use on-screen user prompts to notify the user when account sharing has been identified. This prompt can be part of a guide (series of prompts) wherein the guidance to the user can range from a warning to an upsell package that supports increased concurrent usage.
Password sharing is an opportunity to upsell current users of the streaming platform. Redfast features usage monitoring software to analyze account activities that indicate password sharing.
The on-screen prompt system can be used to upsell a plan for the user that meets their needs, such as a plan with additional users or devices, preventing a decrease in customer satisfaction rates.
Redfast uses customer engagement software to deliver personalized marketing to streaming service users. Our platform enables the streaming service to target the right audience and enhance the user experience.
This is done through automated offers and discounts to ensure that the user is informed of the promotion at a critical point. In this instance, when password sharing has been identified and the user is prevented from accessing the streaming service, the user is offered a personalized promotion to encourage them to create an account and their own subscription package. These automated campaigns can also be sent to account holders, with discounted friends and family offers.
Password sharing can lead to more serious issues beyond streaming or subscription services. Many users have the same email address and password for other services, such as their email or banking accounts. If these passwords are shared across multiple devices, the likelihood of this information being compromised increases.
Passing sharing crackdown measures are becoming a wider and ever more popular solution across streaming services. With many streaming services now operating with a password sharing ban, many have seen a boost in revenue and effective upselling of subscription plans.
Using the Redfast platform to prevent password sharing is an ideal and popular solution for our clients to boost sales, promote upselling, and engage with their customers and subscribers.
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If you have any queries about our customer engagement platform, or how we can help you tackle the issue of password sharing, don’t hesitate to get in touch with our team of experts.
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