Motley Fool Money Netflix’s Promising Next Act
Jun 14, 2023
Jim Mueller, a Motley Fool analyst, dives into Netflix's ambitious plans to tackle password sharing and the launch of an ad-supported membership. He shares insights on the early signs of success and the competitive landscape with giants like Disney and Apple eyeing advertising in streaming. Joining the conversation is Sasan Goodarzi, CEO of Intuit, who elaborates on how AI and data are revolutionizing their business strategies, enhancing small business operations, and improving financial decision-making. Tune in for a blend of growth strategies and technology innovations!
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Password Crackdown Works
- Netflix's password-sharing crackdown is showing early signs of success, leading to a surge in subscriptions.
- This was necessary as subscriber growth had slowed considerably, and subscribers are key to the company's revenue.
Two Growth Drivers
- Netflix explored two growth drivers: a password-sharing crackdown and an ad-supported tier.
- The ad-supported tier offers pricing flexibility after hitting a wall with regular price increases.
Industry-Wide Trend
- Netflix's struggles with slowing growth and the need for new revenue streams are likely to be faced by other streaming services.
- Companies like Disney, Amazon, and Apple might have to explore similar strategies as competition intensifies.