The free-viewing party is over at Netflix.
Netflix is poised to crack down on account sharing. What happens now?
The company estimates that 100 million households use the streaming site without paying.
But the company’s financial results pleased Wall Street, sending its stock soaring in after-hours trading.
“We’re still not growing as fast as we’d like,” Netflix Chief Financial Officer Spencer Neumann said on a call with investors Tuesday. “So we’re building momentum. We’re pleased with our progress, but we know we’ve got a lot more work to do.”
Now the company is poised to change its strategies, including by exploring lower-cost plans with advertising and trying to wring money out of the 100 million households that use Netflix through shared log-in credentials and do not pay for the service. Here’s how that might play out for consumers.