It's Wild How Much Money Netflix Will Make by Eliminating Password Sharing

Credit: Netflix
Netflix can make billions if it stops users from sharing accounts. 

How many people are using your Netflix password?

You don't have to say it out loud, but think on it. We all know someone, or maybe we are someone, who is sharing their Netflix account with someone else.

It's sort of how Netflix became such a phenomenon in the first place. It was like a chain letter of content you could allow your friends to watch and share. But Netflix got so big, and so many people started sharing passwords, that they realized they were leaving a lot of revenue on the table. 

Until now.

Last week, we covered that Netflix was testing out eliminating password sharing in some Latin American countries. Now, experts have weighed in on what it might make the company if it embraced it worldwide. 

According to estimates by Cowen & Co. analysts, they think the company can add about $1.6 billion in global revenue annually. That's an intense amount of upside. 

Of course, that estimate is based on there being people outside of households who are across family, significant other, and friendship lines. While they can't be totally sure just how many that involves, they estimate millions. And out of that number, they assumed that about half of non-paying, Netflix password-sharing households would become paying members. 

It seems hard for Netflix to pass that much money up. But only time will tell. Share your passwords while you still can. 

Let us know what you think in the comments.      

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1 Comment

it's a matter of ethic, no people understand the rights of view.
How many of you know that vhs, dvd, bluray are for private view only?
and if you read small line, you cannot share them with other people except your direct family.
How many people read vhs recorder manuals where you find follow lines : recording of tv broadcasting is only for time shift viewing, not intended for conservation breaking rules of transmission rights.
How many people moan in Amazon review that cannot use their capture card to record from tv, streaming, cable channels and more, without understanding that there isn't an hardware problems but a legal problems.
Most of people think to own things only paying it, but is not right. Also software which we bought, we bought a limited time license of use, at developer/producer discretion... in the software history happen two or three times that a producer ask to user to remove software but happened, for example when autodesk bought XSI from Microsoft and kill it few years later to eliminate an uncomfortable competitor, i was ones of his user, or when Adobe kill Freehand (illustrator competitor) after few years, or LivePicture a Ph competitor, or when after a legal discussion about Dolby Licence, Adobe remove Dolby Ac3 codec from their software and lock cloud license (previous this episode we can use with CC rental account all software from cs5.5 to last cloud license) to cc2018 October, forcing all user to update, to change where computer are not compatible with recent version of software, or to change software (Adobe dvd bluray author software was excluded from license).
the world is simpler than we think, we have very few rights, but most of people are not aware of it.

March 24, 2022 at 1:47AM, Edited March 24, 1:49AM

You voted '-1'.
Carlo Macchiavello
Director (with strong tech knowledge)