Paying to Share Netflix Outside Your Household

Sharers are paying subscribers to the service who are sharing their credentials.

Borrowers are non-paying subscribers to the service using the sharer’s credentials.

Sharing with other family members (parents, children in university)

• Causes: Main HH manages the sub-accounts

• Action: Offer additional accounts from the main at a cheaper rate

• Impact: Higher ARPU from the same number of MAU

Sharing with friends – subscribers who should be paying you for a separate subscription

• Causes: Cheaper to get a premium package and share than get two standard packages. Not worth paying for occasional dipping.

• Action: Move to ad-funded cheaper tier

• Impact: Higher MAU, ad-revenue flowing in

Accidental Sharing

• Causes: Logging into a holiday device and not logging out

• Action: Password reset

• Impact: Accurate reporting of viewing per MAU