Netflix launches Profile Switch; inventory amongst sector leaders, up 7% (NASDAQ:NFLX)

Netflix (NASDAQ:NFLX) notably stated earlier in 2022 that it will deal with incremental income positive factors by including an advertising-supported service degree, and discovering methods to attract some income from those that shared passwords to entry content material on the service. And whereas it is tackling the advert plan half in a few weeks, Monday introduced motion on the passwords entrance.

The streamer launched Profile Switch, permitting customers to simply transfer things like customized suggestions, viewing historical past, watch lists, saved video games and different settings into a brand new account, making it simpler for these customers to start out their very own membership.

Netflix inventory (NFLX) is 7% greater Monday, among the many prime gainers in a broadly rallying Communication Companies sector, because it prepares to report earnings after the market shut Tuesday. Netflix’s efforts to seize a few of the funds it is misplaced to households sharing passwords (with each other or distant relations) will draw a few of the consideration from observers of the report.

“Individuals transfer. Households develop. Relationships finish. However all through these life adjustments, your Netflix expertise ought to keep the identical,” Netflix’s Timi Kosztin says.

It is a “new, a lot requested characteristic,” Kosztin says – although it is also a part of Netflix’s inside testing in some international locations because it appears to be like to maybe supply customers a strategy to pay some smaller price to stay a part of one other family’s profile.

That comes after Netflix estimated that passwords to its service are being shared in additional than 100M nonpaying households globally.

Netflix’s Cobra Kai additionally celebrated a second week because the most-streamed program by time spent.