One fifth of those using streaming services like Netflix borrow passwords from others

More than one-fifth of young adults who stream shows like “Game of Thrones” or “Stranger Things” borrow passwords from people who do not live with them, according to a Reuters/Ipsos poll, a finding that suggests media companies are missing out on significant revenue as digital viewership explodes.

Twenty-one percent of streaming viewers ages 18 to 24 said they had accessed at least one digital video service such as Netflix Inc, HBO Now or Hulu by using log-in credentials from someone outside their household at some time. Overall, 12 percent of adults said they did the same thing.

Subscription revenue is likely to come under scrutiny starting next week when TV industry players begin reporting quarterly earnings. Netflix, the dominant streaming service, releases its results on Monday.

Up to now, Netflix and other streaming networks have accepted some password-sharing, but they may face pressure from investors to change course if new sign-ups slow substantially, Wall Street analysts said. Revenue growth at Netflix is projected to drop from 31 percent in this year’s second quarter to 19 percent in the second quarter of next year, according to Thomson Reuters I/B/E/S.

“If Netflix goes from a 30 percent revenue growth story to a 10 percent story, there is absolutely going to be more focus on their leaving money on the table,” said Justin Patterson, an analyst with Raymond James.

Netflix declined to comment.

Respondents to the Reuters/Ipsos survey said they borrow passwords to save money on video subscriptions, which can be cheap on their own but add up with multiple services.

Donielle Bradshaw, a live-in nanny in Smyrna, Georgia, said she uses her 28-year-old sister’s password for Hulu, and her 32-year-old brother’s password for Netflix.

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