r/stocks
Netflix is plugging password sharing loopholes
Netflix's new MFA to block password sharing and TF1 partnership could drive massive subscriber growth and beat Q3 estimates.
- Implementing MFA will close password-sharing loopholes, potentially converting millions of the 100M sharing households into paying subscribers.
- Partnership with France's TF1 brings high-margin revenue sharing and deep local content, serving as a scalable model for other cord-cutting markets.
- Current stock dip presents a buying opportunity as these growth avenues could easily lead to Q3 guidance beating estimates.
Netflix is introducing multi factor authentication (Face ID, etc) tied to individual profiles beginning July 7. They will eliminate the loophole of traveling and SMS codes that has kept password sharing going.
Before the first round of password sharing restrictions a few years ago, Netflix had estimated 100 households sharing passwords. If even 10%-30% of those continue to do that today, that’ll mean millions of new additions to its existing 325 million subscribers.
This update was picked up by users and the media after Netflix began putting up pop ups asking people to enter an email to their individual profiles.
The stock is down and it seems management is working on multiple growth avenues. If this works, then Q3 guidance should easily top estimates.
One additional update that’s gone under the radar: Netflix signed up France’s market leading TF1 channels on to its app. It has got 20-something viewers and TF1 has deep local content. It’s a win-win for both sides. Brings in new content and revenue sharing on Netflix at minimal cost I.e. high margin.
This is a test case. With cord cutting as a global trend, TV channels have every incentive to sign up with Netflix to gain a new avenue of distribution. It gets them new viewers and gets Netflix more content and revenue sharing.
Considering what cable providers and YouTube TV charge, Netflix has a lot of room to run with this strategy.
They can’t stop the sharing of passwords between a family, doing so would make the platform so unusable that no one will bother. Their content is also getting worse and worse
100% their original stuff is bad to the extent it's insulting to the intelligence or it's giving off Dan Schneider there's going to be documentaries about this later vibes. Getting Warner Bros IP would have helped them a lot short term but they probably would have just turned it into slop.
I don’t think I’ve watched a Netflix show since season 3 of the Witcher. And I regret watching it.
More people will just move to HBO and Disney
I want best quality but I have to pay family of 4 price for it. I live by myself so I can’t even share it with anyone. What kind of bullshit is this?
Their stock is down because of nonsense like this. They’ve pissed off thier users with this password sharing nonsense and it’s gone too far. The harder it becomes to access the more users will cancel or find alternatives I feel.
Face ID? Get the fuck outta here.
It’s Netflix, not Fort Knox. 😂
We shouldn’t be normalizing ridiculous biometric security for mundane things like this. Ffs.
Incoming redditors that say they'll cancel their subscription to protest this like the last 10 times.
Ironically I feel like Netflix is much less culturally impactful following that decision. It may make up for it with additional subs, but feel like it’s pretty rare now for them to have something everyone is watching and talking about (outside of the OG stuff like Stranger Things for example).
I think there was a lot of free marketing you’d get from organic conversation and a sense of FOMO if you didn’t have Netflix, or access to it where you couldn’t participate in that conversation happening all around you. Not really the case anymore.
Pay for mine then if it’s not expensive
Cancelled Netflix a while ago :)
How can they stop you sharing them even if you live in a different house? We do it and if they somehow stopped it we would cancel. It’s not worth that silly price for one person to use
I've been pushing my wife to let me cancel Netflix for a while now. It's too expensive. If it starts making us do face scans, she will cancel it herself. That is the #1 way to tick her off.
HD doesn’t even have HDR I believe. It’s so scummy.
I haven't had Netflix for a number of years due to lousy content and their crackdown on sharing. Much of what they had, I could get for free on Pluto TV so there's that.
Talking heads at Netflix assume that they will convert the "sharers" to subscribers and nothing could be further from the truth. They will just piss people off and said people will look elsewhere for their entertainment, not to mention their stock will drop.
Man I miss the blockbuster days. Going to the store to pick out a few movies, some popcorn and candy was an adventure. No hassles just rent, your whole family could watch it (even if they didn't live with you) and just return a few days later.