Costco Goes the Netflix Way, To Stop Sharing Of Memberships and Subscriptions
Portfolio Pulse from Vandana Singh
Costco Wholesale Corporation (NASDAQ:COST) is implementing stricter measures to prevent card-sharing among customers, following a trend set by companies like Netflix Inc (NASDAQ:NFLX). Costco now requires photo identification and customers' membership cards at its self-checkout registers. The move aims to prevent nonmembers from reaping the benefits and pricing available to the members. In 2022, Costco generated $4.2 billion in sales from membership fees, up 9% Y/Y.
June 29, 2023 | 11:49 am
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POSITIVE IMPACT
Costco's stricter measures to prevent card-sharing could potentially increase its membership sales, which already generated $4.2 billion in 2022, up 9% Y/Y.
Costco's move to prevent card-sharing could potentially increase its membership sales as it forces more people to purchase their own memberships. This could lead to an increase in revenue, which could positively impact the company's stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Netflix is mentioned as a company that has previously implemented measures to prevent sharing of paid memberships.
Netflix is mentioned in the context of having previously implemented measures to prevent sharing of paid memberships. However, the news does not provide any new information or developments about Netflix, so the impact on its stock is likely neutral.
CONFIDENCE 75
IMPORTANCE 25
RELEVANCE 50