3 Ways Netflix Can Bounce Back After the Crash
Streaming content pioneer Netflix (NASDAQ: NFLX) is experiencing an incredible fall from grace. The company is struggling in the aftermath of the coronavirus outbreak after initially enjoying a boom. Netflix's stock was trading at $172 per share as of this writing, down from over $600 late in 2021.
Despite the bad news, there are actions Netflix can take to bounce back after the crash. Converting the estimated 100 million free riders into paying members would be a good start. Successfully launching an ad-supported version could spur signups from cost-conscious viewers. Finally, ditching the box-office avoidance strategy would remove a competitive disadvantage.
Shockingly, Netflix management estimates there are 100 million households that are watching its content without paying. It's not surprising that people are sharing their passwords with friends, family, and classmates outside of their homes, but the magnitude of the phenomenon caught some investors off-guard. To put the figure into context, Netflix has 222 million paying subscribers as of March 31. Netflix could almost instantly grow its subscriber base by 45% by getting these free riders to pay.
Source Fool.com
