The particular article I found on Reuters said that Netflix has extended its efforts to combat password sharing by alerting users in over 100 countries, including the United States, that their accounts cannot be shared for free outside of their households. The streaming giant aims to find new revenue streams amidst market saturation, and this crackdown on password sharing is one of its strategies. Netflix is sending emails to customers in various countries, emphasizing that an account should only be used within a single household. However, paying customers have the option to add a member outside their homes for an additional fee. The company estimates that over 100 million households have shared their log-in credentials, and it is implementing these measures to address the issue. While sharing within the same household is still allowed, users will be able to use their Netflix accounts on multiple devices while traveling.
I thought a little about what I’ve read. On one side, I understand Netflix, why they have decided to take such measures. I mean, if subscribers’ numbers are falling, and at the same time there is the same number of users, that means that something is wrong. And one more thing I need to consider here is that Netflix has its own stocks on the market, meaning that lower subscription numbers also mean lower interest from investors. But on the other hand, this decision by them can be a double-edged sword. Competition on the market is growing day by day. Some of them include Disney, Sony, Hulu, and others. If Netflix decides to ban users, using some other password, that could mean that people will find a substitute company and move their account to other platform. The one that still makes password sharing possible. In my opinion, this is still new topic, so I will have to wait some time to see the actual impact on the price of stocks. For now, Netflix remains one of the biggest streaming companies, and that is the reason I will keep an eye on it and maybe purchase some stocks, if the market situation will be right.
Movement of Netflix stocks in the last five years. (Source: Investing) *
* Past performance is no guarantee of future results.