Cowen analyst John Blackledge said Netflix Inc.’s new password sharing tests in three Latin American countries could yield a long-term revenue opportunity.
Cowen’s monthly survey of 2,500 U.S. consumers suggested that 42 percent of U.S. users share a Netflix password leaving Netflix well-positioned to pursue ways to monetize these subscribers.
If Netflix’s test worked and the company rolled the program out globally, it could add $1.6 billion in global revenue, or 4 percent upside to Cowen’s 2023 estimates.
Blackledge has an Outperform rating on Netflix.
By Anusuya Lahiri
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