According to reports, Netflix is testing new features. Its goal is very clear, restricting users to share account passwords and forcing non-paying viewers to subscribe. A Netflix press spokesperson declared: “The purpose of this design is to ensure that users have been authorized to use Netflix accounts.”
Wall Street, which used to be optimistic about Netflix, is thinking: “How many people will become paying users?” Some analysts are confident. They think that users will be obedient under the lure of “Bridgeton” and “Abandoned Soldiers” Spend money, but uncertainty still exists. After all, Netflix’s competitors are eyeing and vying for users.
When the pandemic subsides, Netflix’s growth rate will slow down, and investors have voted with their feet. Benchmark Co.’s Matthew Harrigan (Matthew Harrigan) pointed out that people are vaccinated against the new crown, global consumers will leave the sofa, blocking password sharing will hurt Netflix’s bargaining power.
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Last week, Needham screamed, declaring that user loss is the biggest challenge Netflix will face in 2021. BMO Capital Markets is more optimistic. It believes that blocking password sharing can increase the number of subscribers. Bloomberg Intelligence believes that this move can increase revenue by 10%, but the risk is not without it, users may be alienated and lost.
How many people are sharing accounts with outsiders (people outside the family)? What is the ratio? These issues deserve attention. Bloomberg thinks tank believes that there are 74 million Netflix users in the United States, of which about 29-30% share accounts, while Magid estimates that the proportion is about one-third.
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