Netflix Aims to Boost Revenue

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.”