Jason Helfstein, Oppenheimer Managing Director, discusses his bullish case on Netflix cracking down on password sharing.
You can watch the full interview here.
Key video highlights
00:00 On how crackdown will benefit revenue
00:11 Password sharing among affluent people
00:30 On crackdown being a 'net positive'
00:45 On different Netflix tiers
JASON HELFSTEIN: And they would not be doing this if they thought they would end up in a worse revenue situation. The bottom line is there's a massive amount of password-sharing, particularly amongst affluent people, let alone a broad part of their range. So we do think a good chunk of their subscribers will probably pay more to keep certain members of their household or, let's say, their children who no longer live with them on their plan-- or their mother, for example.
But we think this is a net positive. They know what an advertising subscriber is worth. They know what password-sharing is worth. And effectively, if you don't want to pay, you can go to the ad plan. And so I think that's what's going to happen. You're going to add more delineation between the tiers that they offer.