Channelnews : password sharing crackdown paying off for netflix

Netflix’s decision to stop password sharing, which kicked off in Australia, appears to be paying off, with their shares and revenues rising in recent weeks. The decision to try to grow

revenue share by hitting existing users comes at a time when consumers are cutting back on their streaming subscriptions, with the decision to force password sharers to take out a new

subscription leading to additional growth claim observers. This strategy, along with the debut of a lower-cost tier with advertising, could keep user growth robust, supporting an extended

rebound in the stock claims Bloomberg. “There are millions of people on shared accounts, and if you get a few bucks per month out of even a small percentage of them, that creates a huge

recurring revenue base that can supplement current growth,” says Jamie Lumley, senior analyst at Third Bridge, who sees the crackdown as a “huge opportunity” for the company. This year

Netflix shares are up 18 per cent, but despite these gains, the stock remains 50 per cent below a peak from late 2021. The stock fell 1% yesterday. Off the back of the crackdown on password

sharing revenue is expected to increase 8.6% this fiscal year, before accelerating to almost 12% growth in fiscal 2024. It rose 6.5% last year. Bank of America expects subscriber results

markets such as Australia the US and Canada “will be significantly stronger than current consensus,” citing an analysis of third-party data that it sees as “an encouraging sign that NFLX’s

recent crackdown on password sharing is driving new subs to the service.” Netflix has said that more than 100 million people are using the service without paying for it. The company reports

first-quarter results April 18, and analysts expect it will add 2.3 million subscribers, according to data compiled by Bloomberg. That will bring total paid memberships to 233 million. About

Post Author David Richards David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated

Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee

Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes

about technology and the impact on both business and consumers.