Netflix's Co-CEO Says 'Thrilled' With Password-Sharing Crackdown, Sees Positive Impact On Engagement
Portfolio Pulse from Benzinga Neuro
Netflix Inc (NASDAQ:NFLX) is experiencing positive results from its crackdown on password sharing, leading to increased user engagement and new account sign-ups. Co-CEO Ted Sarandos expressed satisfaction with the strategy during an earnings call, noting that while engagement was slightly impacted by paid sharing, it is expected to normalize as users create their own accounts. The company's Q4 earnings showed a 12.5% year-over-year revenue increase, surpassing consensus estimates, continuing the positive trend from Q2 2023. Netflix's move has also drawn attention from competitors like Amazon.com Inc's (NASDAQ:AMZN) Prime Video.
January 24, 2024 | 5:07 am
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Amazon's Prime Video has mocked Netflix's password-sharing crackdown, but Netflix's successful results may put competitive pressure on Prime Video.
Although Amazon's Prime Video is not directly affected by Netflix's policy, the competitive landscape could be influenced by Netflix's success, potentially impacting Prime Video's strategy.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Netflix's crackdown on password sharing has led to increased engagement and new user sign-ups, contributing to a 12.5% year-over-year revenue increase in Q4, surpassing consensus estimates.
The positive impact on Netflix's revenue and subscriber growth due to the password-sharing policy is likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100