The password sharing Reddit comment is at least 50% of negative comments about Netflix in this thread and in the thread on Netflix’s last quarterly call. Reddit users say they’ll cancel because of this but Netflix isn’t even chasing families sharing accounts, they’re chasing people buy for a group of friends and sharing across multiple unrelated households. And there’s really no clarity on what Netflix will even do here, just that they want to convert them to individual users.

The math is pretty simple, if you have a group that shares an account across 5+ households each, maybe it’s 200k accounts covering 1M households…You could afford to lose 80% of those households and still break even. And they’re likely betting that they’ll lose 50-60% of those households overall and grow subscriptions by 200-300k. And it’s likely they’ll be streaming less hours overall which marginally lowers costs for those customer. People who think this is some massive downfall move are basically bad at business, good at whining on Reddit and think everything should be free.

Hollywood has been declaring the downfall of Netflix for years now. What I didn’t state is that this was basically one comment on an entire discussion on a Netflix where there were points in each direction. The most convincing argument is that Netflix is still by far in a very strong position because of the number of hours people spend on it relatively to literally anything else. Their biggest competitors are really just YouTube and TikTok and social, which are just different forms of streaming/content. Comparing against TV and other streamers Netflix is winning and will continue to win. A Hollywood exec touting Netflix’s downfall is like GM saying Toyota is on their way out when the Prius quality recall happened. It’s an overreaction to a moment in time.