Netflix launches Profile Transfer; stock among sector leaders, up 7%
Netflix (NASDAQ:NFLX) notably said earlier in 2022 that it would tackle incremental revenue gains by adding an advertising-supported service level, and finding ways to draw some revenue from those who shared passwords to access content on the service. And while it's tackling the ad plan part in a couple of weeks, Monday brought action on the passwords front.
The streamer launched Profile Transfer, allowing users to easily move such things as personalized recommendations, viewing history, watch lists, saved games and other settings into a new account, making it easier for those users to start their own membership.
Netflix stock (NFLX) is 7% higher Monday, among the top gainers in a broadly rallying Communication Services sector, as it prepares to report earnings after the market close Tuesday. Netflix's efforts to capture some of the funds it's lost to households sharing passwords (with one another or distant family members) will draw some of the attention from observers of the report.
"People move. Families grow. Relationships end. But throughout these life changes, your Netflix experience should stay the same," Netflix's Timi Kosztin says.
It's a "new, much requested feature," Kosztin says - though it's also part of Netflix's internal testing in some countries as it looks to perhaps offer users a way to pay some smaller fee to remain part of another household's profile.
That comes after Netflix estimated that passwords to its service are being shared in more than 100M nonpaying households globally.
Netflix's Cobra Kai also celebrated a second week as the most-streamed program by time spent.