I wanted to bring this up to see what people’s thoughts are on playing this. So Netflix has implemented a system to begin disabling password sharing. They say that it will generate 1.6 billion in international revenue (4% higher). While that seems like good news for the stock I don’t necessarily think that will be the case. Sure some users will probably sign up because they got booted from their grandmother’s account, but I don’t think enough to raise that kind of revenue. Netflix has been slowly taking off popular shows over the last several years due to them switching over to competing platforms (example The Office) I’m still fucking salty about that. I think the market is taking this as negative news , down 2.2% today. I think it could continue into tomorrow but I could be wrong. I just wanted to get some other people’s thoughts on this.
This makes me bearish on Netflix. This is going to sour public sentiment. However, we’ll see if people can handle the withdrawals or if this will actually create more subscriptions.
A big thing thats not mentioned often about this is its not occuring in most countries. The list is small and it doesnt include the US. This is being rolled out in Chile, Costa Rica, and Peru. I dont see anything happening based on this news unless that list of countries expands into territories with more users.
From what I understand they’re testing it there implying that they are trying to see if they can apply it at an international stage. That’s just a personal opinion though they could just do it there and be done with it.
