Netflix Stock (NASDAQ:NFLX)
Wall Street is wondering what, if any, impact the practice might have on the revenue figures of the streaming TV giant now that Netflix (NASDAQ:NFLX) has launched the most stringent crackdown on its subscribers sharing their account passwords. This comes after Netflix announced it would launch the most severe crackdown on subscribers sharing their account passwords.
As a result of charging users more when they allow others to use their login information, Loop Capital analyst Alan Gould predicts that Netflix will experience a modest but respectable increase in sales.
According to Gould, who conducted a survey of more than 500 domestic Netflix users, the results suggest that charging for password sharing and limiting the number of shared accounts could lead to a 3% increase in revenue for Netflix, a 19% reduction in the number of paying customers, and a 27% increase in average revenue per user [ARPU].
A few months back, Netflix started conducting experiments in South America to try out charging for password sharing. The firm said on February 8 that it will begin charging customers in Canada, New Zealand, Spain, and Portugal for the ability to share passwords. It also informed Canadian customers that they had until February 21 to choose a preferred location for their accounts. According to Gould, the sharing charge was less than half of the cost of Netflix’s regular plans in those four locations.
According to Gould, Netflix stock seems confident in its prediction that “charging for passwords will boost income,” which Gould called the “North Star” of the corporation.
In response to a question about when Netflix might begin charging for password sharing in the United States, Gould stated that the company would most likely evaluate the preliminary data from Canada, New Zealand, Spain, and Portugal before putting the program into action, which would most likely take place around the middle of this year.
It was reported at the end of February that Netflix stock has begun lowering pricing in some regions of the Middle East, Europe, and Latin America to stimulate growth in the number of its subscribers.
Featured Image: Unsplash @ Souvik Banerjee
Author Shariq Khan 
