The streaming giant said it’s exploring a lower-tier ad-funded product and cracking down on the 100 million households that are sharing passwords of the 222 million paying customers. (The Logic)

Talking point: Co-CEO Reed Hastings admits password sharing isn’t new. What is new, as his letter to shareholders noted, is the launch of rival services from “traditional entertainment companies” over the last three years. With pandemic restrictions lifting and inflation rising, viewers may be reconsidering binge-viewing purchases. Co-CEO Ted Sarandos said it will need a big franchise like “Bridgerton” about once a month. Wall Street analysts weren’t impressed with the company’s turnaround plan, with 10 firms downgrading the stock, calling the earnings report “shocking” and a “nail in the NFLX narrative coffin.” Meanwhile in Canada, Telus is launching a Stream+ product combining Netflix Premium, Apple TV+ and Discovery+ for $25 per month, after the telecom company estimated that almost half of Canadians they surveyed use three or more streaming services.