We've seen plenty of major moves from Netflix recently as the streaming giant tries to post better numbers from a disastrous showing earlier this year. The first step was introducing an ad-incentivized cheaper tier of subscription was the first step. Now, Netflix is cracking down on account sharing.
A recent report by the WSJ claims Netflix researchers have been campaigning about this for a while, claiming that password sharing is eating into the platform's subscription numbers.
Make no mistake, I don't think consumers are going to love it right out of the gate," Netflix Co-CEO Ted Sarandos told investors earlier this month. And that's the risk this huge gamble brings, as the public's opinion of Netflix has significantly worsened after record interest during the pandemic.
Outside analysts seem to add up to Netflix's claims, with one study showing the company is going to rack up more than $720 million in additional revenue if it shuts down password-sharing right now. Their findings are based on surveys in which the majority of customers said they'd pay additional fees to keep their family members signed in if Netflix was to go ahead and institute that policy.