While the streaming industry navigates password sharing, attempting to strike a balance between usability and profit, some experts have said policies like the one coming to Netflix can be hostile.
"A password crackdown across the industry would lead to more volatility because people will swing to the content that they want," consultant Stephen Beck told Marketing Brew in an Interview. "They won't stick around on that service for the periods of time when the content is not fresh and not interesting."
While Netflix anticipates the new policy may lead to cancellation, it said in a letter to shareholders last week it anticipates an overall increase in revenue.
"We expect to see some cancel reaction in each market as we roll out paid sharing, which impacts near term member growth," the letter reads. "But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue."