And Now, Back to the Show!

Even though program quality remains middle of the pack, an advertising tier can help regain subscriber momentum and password sharing mitigation shows meaningful ARPU lift potential.

December 2, 2022

An ad-supported tier and the crackdown on password-sharing can accelerate subscriber momentum as well as lift ARPU.

Non-subscribers want in on Netflix. Based on our data, Netflix is poised to add 6-14m subscribers in the US alone with ad-supported streaming.

Password sharing is not a problem exclusive to Netflix; however, they do seem the most keen to act on it. This is good news; AlphaROC’s data reveals almost 1 in 5 people share their Netflix passwords, and half of them are willing to pay an extra $2.99 a month for the privilege.

Remember, the customer is always right, especially when it can lift ARPU!

Curiously, however, Netflix ranks lower than its competitors when it comes to content satisfaction (HBOMax, Disney+, and even Discovery+). Trying to predict the success of entertainment is a fool’s game, but we believe these initiatives will help weather the storm.

Signup for our newsletter

Ad supported tier

Keep the Ads Running

40% of non-subscribers would consider a cheaper ad-supported tier

Password Sharing

Take One, Pass It Around

Almost 1 in 5 people share their Netflix account


ARPU lift potential

50%+ of password sharers are willing to pay 15-20% more to keep the privilege

Content Quality

What to look out for

Subscribers rate Netflix content as mostly average, but that hasn’t driven them away

Signup for our newsletter

DISCLAIMER : This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is general in nature and is not directed to any category of investors and should not be regarded as individualized, a recommendation, investment advice or a suggestion to engage in or refrain from any investment-related course of action. Investment decisions and the appropriateness of this material should be made based on an investor's individual objectives and circumstances and in consultation with his or her advisors. Information is obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this material and is subject to change without notice. Any views or opinions expressed may not reflect those of AlphaROC as a whole. Third-party economic or market estimates discussed herein may or may not be realized and no opinion or representation is being given regarding such estimates.  This material includes estimates, outlooks, projections, and other “forward-looking statements.” Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed. Investing entails risks, including possible loss of principal.

AlphaROC occam case studies are for illustrative purposes only.  This material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. The firm, its employees, data vendors, and advisors may hold positions, including contrary positions, in companies discussed in these reports. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described in these case studies will be profitable. Investors should consult with their advisors to determine the suitability of each investment based on their unique individual situation. Past performance is no guarantee of future results.