Why 2023 Will Be a Big Test for Netflix
Last year was challenging for Netflix (NASDAQ: NFLX). Panic set in for the streaming platform as its growth story looked like it was coming to an end. The company reported an unexpected drop in subscriber numbers, prompting a sell-off of its shares.
And while it did recover from that setback, the company knows that its business isn't growing enough anymore. The pandemic-induced boom is over, there's more competition, and the company is now on the cusp of what could prove to be a risky strategy: cutting down on password sharing.
Netflix knew for ages that people shared passwords, and it didn't care enough to do anything about it. The company was growing fast enough that it didn't matter if people from different households were sharing subscriptions because its numbers were good and rising. But now that the growth rate has come to almost a screeching halt, the priorities have changed.
Source Fool.com
