Netflix is in the process of tightening the screws on the practice of password sharing, or giving free access to their Netflix account to someone who does not live under their roof. The company is indeed testing in Chile, Costa Rica and Peru a new feature allowing you to add an additional member to your account via an additional payment.
+4% turnover
According to John Blackledge of the analyst firm Cowen & Co, this novelty could pay off if Netflix extends it to the rest of the world: +4% in annual turnover, or some 1.6 billion additional dollars per year. According to Cowen & Co, this figure would be reached if half of the “free riders” became low-cost subscribers, taking advantage of another member's account for $2.99 per month.
According to the firm, 42% of Netflix subscribers in the USA currently share their password, and 10% of respondents admit to accessing the service without paying, compared to 7% in 2017. Source: mediaplaynews
