Netflix Tries To Boost Subscribers By stopping Sharing
Canadian Netflix users will soon be locked out of their Netflix account as the streaming giant begins cracking down on password sharing. In a move aimed at growing subscribers and revenue, Netflix Canada has started sending emails to Canadian users outlining limits to how accounts can be accessed by those who do not live with the account holder.
Netflix has relied on password sharing to build word of mouth for its TV series and films for many years, but the company now wants to take control of the situation. Premium and standard account holders can “buy an extra member slot” for $7.99 per month each, allowing them to add up to two non-resident members. For standard subscribers, who pay $16.49 per month, one additional member can be added for an additional fee of $7.99 per month. Unfortunately, basic plans, which cost $9.99 and ad-supported plans, which cost $5.99, will not be able to add more members.
The company did not specify when it would begin enforcing the new rules, but it has characterized the announcement as the first step towards requiring viewers to have an account for their own household. In a letter received by one subscriber, titled “Netflix is for a single household,” they were given until February 21st to add a “primary location” to their account. This will allow Netflix to recognize anyone who accesses the account outside of the home base.
For those who frequently travel or own a second home, Netflix says the account holder will have to sign in on the Netflix mobile app at least once a month while connected to the Wi-Fi at their primary location. Subscribers who move homes within Canada may be required to update their primary location to avoid being locked out of Netflix.
Netflix has tested these password-sharing rules in Latin America over the past year and received some negative feedback from viewers who felt it was unfair since other streaming services still allow password sharing. However, Netflix has recently described the phenomenon as out of control, estimating that more than 100 million households share accounts, affecting its ability to invest in new TV series and films.
In addition to Canada, the new restrictions were applied to Spain, Portugal, and New Zealand on Wednesday, and Netflix says the rules will be introduced to other countries over the next few months.
Netflix’s clamp down on password sharing in Canada is a step towards the company’s goal of growing subscribers and revenue. Although the new rules may be met with resistance from some users who feel it is unfair, Netflix argues that the phenomenon of password sharing is out of control and is affecting its ability to invest in new content. Time will tell how this change will impact the company and its subscribers, but one thing is certain: those who rely on shared Netflix accounts will soon have to find a new way to access the streaming service.
NFLX Stock Price Forecast & Analysis
The average target price for Netflix Inc, according to the stock forecasts of 50 analysts, is USD 311.51 for the next 12 months. This suggests that the analysts have a bullish outlook for the stock, with an average rating of “Buy”. The target price represents the average price that the analysts believe the stock will reach in the next 12 months.
Stock Target Advisor, also has a slightly bullish outlook for Netflix Inc. This is based on a combination of 8 positive signals and 6 negative signals, indicating that while the overall sentiment is positive, there are some concerns that could potentially impact the stock’s performance.
At the close of the stock market on the day of the analysis, Netflix Inc’s stock price was USD 362.95. This represents a change of +2.57% over the past week, +15.02% over the past month, and -9.74% over the last year.
The stock forecasts and analysis suggest a slightly bullish outlook for Netflix Inc, but investors should always exercise caution and do their own research before making investment decisions. The stock’s price can be volatile and may be influenced by a variety of factors, so it is important to monitor the company’s financial performance and market conditions closely.