Netflix’s Paid Password Sharing Feature Could Earn Them Billions

For a while, many users were buying Netflix’s higher tiered plans and then sharing their passwords with their friends. This made it a more affordable alternative compared to customers buying their own individual plans, but obviously this isn’t really something the company wants.

In fact, just recently, Netflix revealed that they would start testing out a paid password sharing feature where users could share accounts, but sub accounts will need to pay for it albeit at a lower cost compared to individual plans, and it turns out that this move if fully implemented could rake in a lot of money for the company.

According to U.S. analysts Cowen & Co., they have estimated that should Netflix implement this paid password sharing plan worldwide, it has the potential to bring in as much as $1.6 billion annually. However, not all analysts share that optimism. Other analysts like Benchmark Co. have suggested that it might have the opposite effect, and that it might end up cannibalizing full-ride member growth and that overall, it might only see Netflix gain a 4% revenue growth.

Either way, we’ll have to wait and see how Netflix’s test with paid password sharing works out and if customers will hop on board, but what do you think? Would you pay to share a password or would you rather just get your own account or just find an alternative entirely?

Tyler Lee
Categories: General
Tags: Netflix, Social Hit