Netflix had subscribers over a barrel in May, when it announced its password sharing crackdown—pony up for their own Netflix subscription or have (basically) nothing to watch. Analysts at the time seemed bullish about the announcement. In the first four days of Netflix’s new policy, the company had the highest single day subscriber increases in four years, according to analytics company Antenna.
Then, on Friday, the Screen Actors Guild announced it would join the already striking Writers Guild of America, creating Hollywood’s first double strike in over 60 years. Netflix, which is set to announce earnings Wednesday after markets close, is reporting during a pivotal time for streaming and for the entertainment industry. Its earnings will provide an illustrative look back at a recent period rife with internal changes—it went back on its previous statements that it would “never” have ads and expanded the password crackdown to the U.S. after a successful pilot abroad. At the same time, its guidance promises to be fascinating in what it will reveal about the mightiest streamer’s outlook at a time when Hollywood is dark.
