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March 25, 2022 07:00 am

Netflix Could Reap $1.6 Billion Per Year By Charging Password-Sharing Users Extra Fees, Analysts Say

If Netflix follows through with its test to charge an additional fee to users sharing passwords, it could rake in $1.6 billion in global revenue annually, according to a new Wall Street analysis. Variety reports: Last week, Netflix said it was launching a test in three Latin America countries (Chile, Costa Rica and Peru) to address password sharing. Customers will be able to add up to two Extra Member accounts for about $2-$3/month each, on top of their regular monthly fee. According to estimates by Cowen & Co. analysts, if Netflix rolls the program out globally it could add an incremental $1.6 billion in global revenue annually, or about 4% upside to the firm's 2023 revenue projection of $38.8 billion. The firm's estimate assumes that about half of non-paying Netflix password-sharing households will become paying members; further, the model predicts that of those, about half will opt to sign up for their own separate paid account.

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Original Link: https://news.slashdot.org/story/22/03/25/054253/netflix-could-reap-16-billion-per-year-by-charging-password-sharing-users-extra-fees-analysts-say?utm_

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