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In an attempt to boost its revenue prospects, Netflix (NFLX) is cracking down on the ability of its users to share subscriptions across locations. This strategy and implementing a lower-cost subscription tier service with advertising could boost user growth and maintain upside momentum in Netflix’s stock price.
Shares of Netflix have more than doubled off of last year’s 5-1/2 year low. However, the stock price remains about 50% below an all-time high from late 2021. The action by Netflix to crack down on shared accounts could push more users to buy their own plans. Third Bridge said this is a “huge opportunity” for the company as “there are millions of people on shared accounts, and if you get a few bucks per month out of even a small percentage of them, that creates a huge recurring revenue base that can supplement current growth.”
