Netflix, Inc. Log-In Credentials Leaked, Users Need To Worry?


Netflix, Inc. (NASDAQ:NFLX) users’ login credentials were leaked online on Thursday, according to a document posted by the hacker group Derp. However, the hundreds of users whose login credentials have been exposed supposedly do not need to change their passwords, as Netflix claims that it already aware of the breach. The company also said that the stolen passwords appear to be old ones.

It might end up being a prank

The streaming video company, which has more than 48 million subscribers around the world, told CNET that it is looking into the matter. Over 1800 passwords and usernames appeared on the hacker website PasteBin. The list looks similar to the Netflix, Inc. (NASDAQ:NFLX) passwords leaked back in December. CNET tested a few of the credentials, but none of them seemed to be working, and out of several emails sent to Netflix users, one bounced. One user whose login credentials were on the list said that the listed password was an older one.

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“That was a password from about a year ago,” said Travis Hammill, a 24-year-old REI employee in Alexandria, Va. Travis said that since the security breach last year, he has been changing his passwords frequently.

The question now is what Derp will gain by collecting and exposing old passwords. It is possible that Derp might have done this to prank Netflix, Inc. (NASDAQ:NFLX) users because there are already concerns about consequences if the passwords are not changed.

Massive international potential for Netflix

Just couple of days ago, a report from Evercore Partners noted that Netflix, Inc. (NASDAQ:NFLX) has a higher ARPU outside the United States, whereas the investment per subscriber and the delivery cost per subscriber are currently lower internationally. Analyst Alan Gould said that international margins are roughly in line with domestic margins, but as the market matures, international profits could level up or even outpace domestic profits.

Gould is anticipating that international paid subscribers will total 33 million by the end of 2016 and over 50 million in 2018. Broadband penetration is expected to be around 15% (2016) and 20% (2018), compared to 12% at present. With Netflix, Inc. (NASDAQ:NFLX) planning to expand in European countries, 65 million extra subscribers could be added to the present 105 million broadband homes, believes Gould.