The greatest “Easy” revenue lever that Netflix has is not letting folks share passwords / accounts.
They didn’t care in the past because password sharing introduced new customers to the beauty of Netflix and non-linear television! They’d rather you watch house of cards vs not!
Now though - Netflix is arguably more like a utility that “everyone needs” and here’s a good measure of that —> when Netflix raises prices, almost no one considers cancelling (super price inelastic; increase in price with almost no decrease in demand; like oil to some degree recently)
I’d guess that the majority of “password sharers” would either a) figure out a family account because price matters but they love Netflix, b) get their own account because it was laziness and price doesn’t matter / they love Netflix Much more than, c) Cancel Netflix and never come back
220M NFLX subscribers right now. 400M who actually watch Netflix content today? 320-360M who would be subscribers if they crack down on personal account sharing?
