Advertising May Be a Solution to Netflix's Password-Sharing Problem

Netflix (NASDAQ: NFLX) has already begun testing a solution to its password sharing problem. The streaming leader said there's about 100 million households around the world that are watching Netflix without paying for it. In three Latin American markets, it's asking those households to pay a little extra to keep streaming.

Many Netflix sharers have been vocal about their willingness to cancel if the company tries to charge them more for sharing their login credentials. Netflix may not find it profitable to charge subscribers more for sharing passwords, but it needs to curb sharing somehow. A more profitable approach may be found in its plans for an ad-supported tier.

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Source Fool.com