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As shares plunge, Netflix takes aim at password sharing, ads

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An unexpected drop in subscribers sent Netflix shares into freefall Wednesday, forcing the company to consider experimenting with ads and — hold onto your remote — cracking down on millions of freeloaders who use passwords shared by friends or family.

Click here to read the story at ap.com.

Discussion Questions:

  1. What are stocks?
  2. Why is stock price important to a company like Netflix?
  3. Why did Netflix’s stock price drop?
  4. Why do you think Netflix is losing subscribers?
  5. Why do you think Netflix has allowed people to share passwords in the past?
  6. Why are they now looking to crack down on those subscribers who are sharing passwords?
  7. Based on information from this story, how might that impact the overall number of subscribers?
  8. Why do you think they are entertaining the idea of advertisements?
  9. How do you think customers might respond to a Netflix subscription at a lower price that features ads?
  10. In your opinion, will Netflix’s stock price eventually come back to pre-pandemic levels? Why or why not?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.

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