Streaming password sharing costing Netflix, others billions - Citi

• A move to crack down on streaming password sharing at Netflix (NFLX +2.9%) is likely to bear fruit, Citi suggests, saying the habit costs streaming companies billions.
• Analyst Jason Bazinet says the widespread habit of sharing online passwords to subscription video-on-demand services forgoes about $25B a year for U.S. companies, estimating Netflix accounts for about 25% of that lost revenue.
• And that's a healthy chunk in relative revenue, as Netflix made about $25B in its last fiscal year.
• “As streaming services move to center stage, thwarting this theft will be of growing importance for shareholders,” Bazinet writes.
• The issue isn't Netflix's alone, of course; Citi says it's going to become a more important issue for HBO Max/AT&T (T +0.1%), Disney (DIS +1.6%), Peacock/Comcast (CMCSA +1.4%), Paramount Plus/Showtime (VIAC +1.6%, VIACA +1.5%) and Spotify (SPOT +1.7%) as well.
• BofA has also noted that cracking down on sharing could spur net subscriber additions at Netflix.