Netflix's Risky Gamble Will Be Worth It
(NASDAQ: NFLX) is no longer chill with subscribers sharing their account passwords. The leading premium streaming video service is notifying Stateside members that it's starting to crack down on different residences using the same account.
This isn't a surprise. Netflix revealed last year that nearly half of its subscriptions were being shared with family and friends outside of the membership household. It started the monetization process in three Latin American markets last year, giving subscribers the ability to either pay more for sharing with others outside of the home or transfer the external user's profile to create a new account. Canada became the fourth market to follow suit earlier this year.
It's a big move for Netflix. The brand could take a hit in the monetization process, but it's hard to see shareholders complaining. It's not personal; it's business. And with roughly 100 million Netflix accounts worldwide reportedly sharing access outside of their homesteads, there is more money to be made than lost in the move.
Source Fool.com
Netflix Inc. Stock
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