Costco is cracking down on shoppers that borrow a friend of family's membership card at checkout.
Netflix stock has jumped more than 20% since its password sharing crackdown began in the US in late-May.
"Our membership policy states that our membership cards are not transferable and since expanding our self-service checkout, we've noticed that non-member shoppers have been using membership cards that do not belong to them," Costco said in a statement.
This strategic move allows Costco to increase its membership revenue without necessarily raising its annual membership fee," Sundaram said.
So far, Wall Street is receptive of Costco's recent crackdown, with the stock up about 2% since the policy crackdown was revealed on Tuesday.
Persons:
—, Costco, Arun Sundaram, Sundaram
Organizations:
Costco, Netflix, Service, Research