Netflix's revenue could get a rise as charging for password sharing rolls out
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Now that Netflix (NASDAQ:NFLX) has launched its biggest crackdown on its subscribers sharing their account passwords, the question being asked around Wall Street is what, if any impact the practice might have on the streaming TV giant's revenue figures.
According to Loop Capital analyst Alan Gould, Netflix (NFLX) should see its sales actually get a small, but reasonable bump upward as it tacks on extra charges for its members to share their passwords outside of their homes.
Gould said a survey of more than 500 domestic Netflix (NFLX) users suggests that charging for password sharing, and limiting the number of shared accounts, could boost Netflix's (NFLX) revenue by 3%, reduced its number of paying customers by 19%, and lead to a 27% rise in average revenue per user [ARPU].
Netflix (NFLX) began testing charging for password sharing in Latin America a few months ago. On February 8, the company said it start charging for password sharing in Canada, New Zealand, Spain and Portugal, and that Canadian members had until February 21 to set a primary location for their accounts. Gould said the sharing fee was equivalent to just under half the price of Netflix's (NFLX) standard plans in those four markets.
Gould said that Netflix (NFLX) appears confident in that "charging for passwords will enhance revenue," which Gould called the company's "North Star." 
As far as for when Netflix (NFLX) might start charging for password sharing in the United States, Gould said the company would likely assess the initial data from Canada, New Zealand, Spain and Portugal, before implementing the program, likely around the middle of this year.
In late February, it was reported that Netflix (NFLX) had begun cutting prices in some areas of the Middle East, Europe and Latin America in an effort to spur subscriber growth.