Netflix (NASDAQ: NFLX) has breathed a sigh of relief as its second quarter reports show the service exceeded expectations by losing 970,000 subscribers rather than the projected 2 million. The company has plans to further grow revenue by cracking down on password sharing, although that might not be the best way forward.
Here's why Netflix should focus on improving its image and boosting consumer satisfaction rather than setting limits on passwords.
In March, Netflix began testing methods of limiting password-sharing in Chile, Costa Rica, and Peru. The company added two new features in these countries, with one allowing Standard and Premium accounts to add up to two sub-accounts for those in separate households for between $2.00 and $3.00 extra. The second feature was applied to all subscription tiers and let consumers transfer a Netflix profile to an entirely new account.
Source Fool.com