Netflix previously turned a blind eye to password sharing because it was fueling growth, but all those non-paying members were hurting Netflix’s bottom line.

Netflix has also recently cracked down on members sharing passwords. “The extent to which we achieve growth in our membership base, increase the penetration of Executive membership, and sustain high renewal rates materially influences our profitability,” Costco says routinely in its annual filings. The company’s renewal rate was 93% last.Īny changes to membership growth or renewal rates could hurt Costco and force it to raise prices. Costco is known for offering some of the lowest prices in the retail industry.Ĭostco made $4.2 billion in membership fees in 2022, a 9% increase from 2021. The fees help boost the company’s profit and offset expenses, allowing Costco to keep its prices down. This membership model is crucial to Costco’s business, which has boomed during the pandemic. Costco has hinted it may soon raise its membership price.

The company has not raised the cost of its membership since 2017, despite rivals such as Amazon and Sam’s Club raising their membership fees. Costco members pay either $60 for a regular membership or $120 for an executive card every year to shop at clubs. “We don’t feel it’s right that nonmembers receive the same benefits and pricing as our members,” Costco said in a statement.Ĭostco had around 66 million paid members and 119 million cardholders in 2022, making it one of the largest membership clubs in the world. The warehouse club retailer will now ask for shoppers’ membership cards along with a photo ID to use the self-checkout registers – the same policy as regular checkout lanes. Since Costco has expanded self-checkout, the company has noticed that non-members have been sneaking in to use membership cards that don’t belong to them. Some shoppers are buying Costco’s $4.99 rotisserie chickens and paying at self-checkout.

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