Canadians Cancel Netflix on Password Sharing, Maybe time to Sell?

New Password Sharing Charges in Canada

Canadians are furious with Netflix after the streaming platform implemented new measures that would require users to pay additional charges for profiles belonging to someone living away from the primary address. The new password-sharing crackdown plan aims to limit the use of a single account to just one household, but this has particularly stressed out students in university campuses, frequent travellers, and friend groups and families sharing an account.

The announcement has caused many Canadians to cancel their memberships before their next billing date. While Netflix had been hinting at these changes for months, often issuing updates about its experiments with password sharing in Latin American countries, the measures kicked in as soon as they were announced, leaving profiles away from home without access.

Canadians are particularly angry not only because of the new measures, but also because of Netflix’s double standards in North America. While the streaming giant has brought up its concerns about password sharing in the US, it has not mandated anything or introduced additional charges.

The new measures have been met with severe backlash on social media, with many long-time subscribers campaigning for others to leave the platform. Some users are even sharing alternatives to Netflix.

According to Netflix’s statement on the new measures, password sharing is inhibiting its ability to make money. However, the platform reported a whopping US$7.8 billion in revenue in the third quarter of 2022, indicating that it might have shot itself in the foot with these measures.

The new password-sharing crackdown plan by Netflix has not gone down well with Canadians. The measures have caused many to cancel their memberships, with many criticizing the streaming platform’s double standards and urging others to do the same. It remains to be seen how Netflix will respond to the backlash, and whether it will lose a significant portion of its Canadian subscribers as a result of the new measures.

Time to Sell NFLX?

It’s difficult to predict how Netflix’s stock will perform in the near future due to the password-sharing crackdown plan. However, it’s worth noting that the company has been experimenting with password sharing in Latin American countries for some time, and the measures introduced in Canada may have been a response to those tests.

While password sharing is an issue for Netflix, the company has been growing at a rapid pace in recent years, both in terms of revenue and the number of subscribers. Additionally, it has been investing heavily in creating original content and expanding its library, which has contributed to its success.

It’s possible that the new measures will cause some users to cancel their subscriptions, which could have a short-term impact on the company’s stock price. However, it’s also possible that the new measures will have a positive impact by encouraging more users to sign up for their own accounts, resulting in increased revenue for Netflix in the long run, however this is doubtful.

It’s difficult to predict the impact of the password-sharing crackdown plan on Netflix’s stock price, and it will likely depend on a range of factors, including how many users cancel their subscriptions, how the company responds to the backlash, but it would be a prudent move to consider the downside implications.

 

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