Netflix’s Paid Password Sharing Will Drive Growth For Years To Come, Promises Co-CEO Greg Peters
deadline.comNetflix’ crackdown on password sharing, or as the streamer calls it a focus on “paid sharing,” will drive growth for years to come, said the streamer’s co-CEO, addressing a Wall Street concern that benefits may top out this year. “Our paid sharing work, and our ads work, creates a more effective engine to translate all [Netflix] value into revenue growth, and will support increased conversion of our addressable market in many years to come,” promised Greg Peters on the fourth-quarter earnings video call.
That engine, he stressed, “works on top of very healthy organic growth” driven by content including TV series and movies, games, and now live events following a long-term deal with WWE announced earlier today. “We’re excited to be at the point where we’ve operationalized that paid- sharing product work.
It’s integrated into everything we do, and we are iterating and improving on it just like we would any other significant part of our product experience.” Peters was responding to an analyst asking what happens once subscriber and ARM (average revenue per membership) benefits from paid sharing begin to diminish in 2024.
Netflix launched paid sharing in the U.S. in the second quarter of 2023 having successfully tested it in Canada, New Zealand, Spain and Portugal.
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