NETFLIX IS TRYING TO SCAM YOU

8 Feb 2026 · 1 min

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In this commentary, Dan Novaes outlines Netflix’s recent decision to end its long‑standing practice of allowing unlimited password sharing across households. He explains that Netflix identified shared accounts as a barrier to subscriber growth, calculated that charging extra fees for additional households would increase revenue even if some users cancelled, and then implemented a crackdown that imposed fees for sharing and adding new households. The move sparked anger and cancellations, but Netflix’s subscriber growth and stock price subsequently recovered, validating the strategy. Novaes uses this case to illustrate a broader industry shift: companies are moving from generous, growth‑focused policies (like free trials and open sharing) to aggressive revenue‑extraction tactics, raising prices, eliminating free trials, and restricting sharing, thereby squeezing every dollar from customers once they are locked in.

Chapters

Netflix just killed password sharing. And millions of people got angry. For years, Netflix let families share one account across multiple households. One subscription, five people watching. It was part of Netflix's culture. Then their growth stopped. Netflix realized people were sharing accounts instead of buying new subscriptions. So they did the math. If we force people to pay individually, we make more money. They implemented a crackdown. Share a password, extra fee. Want to add a household? Charge them. Suddenly, free sharing became expensive. People were furious. Millions canceled. But Netflix didn't care. They made the calculation that some leaving was worth the extra revenue from people who stay. And they were right. Netflix saw growth again. Their stock went up. Here's the lesson. Companies will always extract maximum value when they can. Netflix was generous when they needed growth. Once they got big, generosity ended. This is happening everywhere. Free trials are disappearing. Subscription prices are rising. Sharing is being banned. Companies are squeezing every dollar out of customers. And once you're locked in, there's nowhere else to go.