Last week came the news that streaming giant Netflix was tackling the issue of password sharing by trialling a program that would see customers able to add up to two Extra Member accounts for around $2-$3/month each on top of their regular monthly fee.
Today, 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.
That estimate assumes around half of non-paying Netflix password-sharing households will become paying members with around half of those opting to sign up for their own separate paid account.
For now, the trial is taking place in just three Latin America countries (Chile, Costa Rica and Peru). It’s estimated around 10% of the 116 million broadband households in the United States include someone who watches Netflix but is not a paying sub and falls outside the family household or roommates delegation which complies with Netflix’s terms.
Source: Variety