Netflix is losing more than $1 billion a year due to subscribers sharing passwords, details

It has been an uphill battle for Netflix as the network faces tough competition from Disney plus and Apple TV + this November. Amid the streaming war, Netflix has begun losing its monopoly over the market with other services like HBO Max being offered at low-cost pricing and even for FREE. But among that, lies another issue that's also causing the company to lose hefty amounts of revenue monthly/annually.

Netflix's password sharing issue seems to have both been a boon and a curse for the streaming service. While the option eventually managed to cover a larger audience to use their service, it also made it harder for the company to crack down on increase in the sharing of passwords among family members and friends.

A recent study has found that Netflix is losing an estimate of $135 million per month or a massive $1.62 billion loss annually. The study comes from an analytics firm Magid and it assumes that at least 10 percent of the services' 13.7 million subscribers at present are sharing their password with at least one person.

Netflix monitors issue

During Netflix's latest financial earnings call, the company's product boss Greg Peters assured that they have been keeping their eyes on the issue.

"We continue to monitor it," Peters said at the time. "We'll continue to look at the situation and we'll see those consumer-friendly ways to push on the edge of that but we've got no big plans at this point in time in terms of doing something different there."

Unfortunately, Netflix is still yet to figure out a strategic model to overcome this hurdle while it fights with upcoming streaming services. Earlier in October, the company was also banned from advertising on Disney channels, a move that came along with Disney pushing into the streaming world.

Netflix has been testing new ways to keep its subscriber base steady. However, one feature, in particular, variable playback speed faced backlash from several filmmakers in Hollywood.

On the bright side, Netflix seems to be doing its best in bracing for competition. The company's recent list of film & TV line-up for November suggests it could hold on to its subscriber base.