Is Netflix Trying to Blow Itself Up?

Since the dawn of time, humans have shared their logins to the site with their friends and family, a loophole that has contributed greatly to the company.

Things are not looking good for the company. The Wall Street Journal reports that the company's shares have plummeted in the past 24 hours, dropping by an astonishing 32 percent.

The numbers are not looking great. The company lost 200,000 subscribers in the first quarter of 2022, sending shivers down the spine of investors.

In full damage control mode, Netflix is going on the offensive, and it's aiming its sights at its own loyal customers, announcing plans to stop people from sharing their passwords with their loved ones.

Is the company trying to self destruct? The company's shares plummeted for the first time this year, and it might have some tough times ahead.

When including the large number of households sharing accounts, combined with competition, is creating revenue growth headwinds, according to a letter to shareholders.

Around 30 million people in North America alone are watching on someone else's account, according to the company, with 100 million globally.

Account sharing as a percentage of our paying membership hasn't changed much over the years, but, coupled with the first factor, means it's harder to grow membership in many markets.

In its note to shareholders, the company acknowledged that sharing passwords helped fuel its growth.

The obvious question is why the leadership of the company is looking to crack down on a phenomenon that it admits has helped it grow.

The company hiked the price of its subscriptions earlier this year in order to squeeze more money out of its customers. Premium tiers cost more than five years ago.

Is it the victim of its own success? People are ready to venture back into the real world now that COVID-19 rules are being lifted across much of the Western world.

It's not clear whether a password sharing ban will help or hurt the company.

100 million households are sharing passwords, and a global crackdown is coming.

There is more on the best streaming services.