As Neumann put it: “We’re focused on healthy growth across a combination of memberships and pricing.” With Netflix focused on improving profitability - it has told investors it expects to be free cash flow positive this year, after breaking even in 2021 - it needs to increasingly look beyond sub growth to drive top-line revenue. CFO Spence Neumann, speaking at last week’s Morgan Stanley Technology, Media & Telecom Conference, insisted there’s still plenty of runway for Netflix to add more members globally, citing relatively low penetration in much of the Asia-Pacific region and Europe, Middle East and Africa (EMEA). Last year more than 90% of Netflix subscriber growth came from outside the U.S. “That’s a positive thing, not a negative thing.”įast-forward to today, and Netflix’s blistering-hot subscriber growth has cooled down, particularly in the U.S., its most mature market. “We love people sharing Netflix whether they’re two people on a couch or 10 people on a couch,” co-founder Reed Hastings said at the 2016 CES tradeshow. 1 priority was to get big fast, it gave tacit approval to account-sharing behavior - and execs even touted the phenomenon.

“It could even be a way to reunite a friendship or friendship group that hadn’t recovered from the disruption of COVID or to create a new tie if you’ve been craving more connection.But after years of tolerating customers sharing their Netflix passwords with friends, which is explicitly banned by its terms of use, why is Netflix doing this now? In short: Netflix’s business strategy is shifting from a focus on high subscriber growth to higher yield per subscriber. “This will create more in-person connection, as you’re watching the show, discussing the show, and planning these watch parties/get-togethers,” McCabe said. You can also use the Netflix policy as an opportunity to propose spending more time together along the lines of: “Since we can’t keep sharing how we were, let’s find a time to watch our favorite show together.” “Then you can get into the technical details: Because of these new rule changes, you’re not going to be able to keep using the account,” McCabe said.

Janice McCabe, associate professor of sociology at Dartmouth College and author of “Connecting in College: How Friendship Networks Matter for Academic and Social Success,” says you should first approach friends and relatives by affirming your connection and letting them know how much you value the relationship.

Netflix no rule