Netflix Wants to Curb Account Sharing
OK, everyone, the jig is up. Netflix (NASDAQ: NFLX) knows you've been sharing your account with family, friends, cousins, and classmates. Until recently, the company was turning a blind eye to the activity, judging that the benefits outweigh the costs. For instance, some would be willing to pay a higher price for a service they can share with multiple people, and perhaps the monthly fee could be shared as well. I'd be curious to see how many electronic money transfers in the amount of 50% of a Netflix subscription transpired last year.
Whatever the total number of unauthorized sharing may be, it appears to have hit an inflection point. Netflix is starting to clamp down by initiating security measures and testing an additional fee to authorize account sharing. The rollout will begin in Chile, Peru, and Costa Rica and could expand beyond that if management likes the results.
Let's look at what that could mean for Netflix investors.
Source Fool.com
