In the epic tale of the streaming wars, content giant Netflix's recent engagement gains are certainly impressive. The platform's executives, during a Tuesday earnings call, gleefully expressed their satisfaction with the crackdown on shared passwords. Co-CEO Ted Sarandos revealed their happiness, emphasizing the impact of curbing paid sharing on engagement trends and saying that the company was “thrilled”.
A Bit of Paid Sharing, A Lot of Growth
Netflix made a bold move last year—cracking down on password sharing. Though paid sharing affected engagement "a bit," Sarandos cleverly framed it as a strategy to encourage new users to create accounts. Netflix seems to be heading towards a new normal, leaving behind the era of shared accounts.
Engagement Triumph and Potential Price Encore
Amidst the applause for Netflix's subscriber surge (13.1 million during October-December 2023), co-CEO Greg Peters hinted at the next step. Having acclimated users to password-sharing fees, Netflix may continue its strategy of small, incremental price hikes. As prices rise, and are monitored meticulously in the US, UK, and France, this could signal a return to "business as usual," with subscribers asked to pay more for the positive entertainment flywheel.
Netflix and WWE: A $5 Billion Clash
In an unexpected twist, Netflix also entered the wrestling arena with a monumental $5 billion deal with WWE. This 10-year agreement not only secures another huge US sorts deal, but also revolutionizes how wrestling content is consumed. Monday Night Raw, WWE's flagship show, will exclusively stream on Netflix in the US, UK, Canada, and Latin America by 2025, marking the end of its 31-year run on linear TV. Netflix will also become the ultimate destination for all WWE shows, including SmackDown and NXT, outside the US.
