Todd Spangler NY Digital EditorNetflix wants users who share passwords with people outside their households — in violation of its terms of use — to pay an additional fee to keep streaming.
The plan, if successfully rolled out globally, could add a cool $1.6 billion to Netflix’s top line, according to a new Wall Street analysis.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.
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