Netflix Canada is cracking down on account sharing, requiring users on premium plans to reside in the same household. Emails have been sent to users asking them to set their primary location by Feb. 21.Richard Drew/The Associated Press
Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
The real reason behind Netflix’s crackdown on account sharing
Netflix Canada’s crackdown on account sharing has begun, and users have been asked by e-mail to set their primary location by Feb. 21. The premium plan, which allows users to watch on up to four devices at once, often has been used by friends and family members who wished to share one account, Mathilde Augustin explains. Under the new rules, Netflix expects all users to either live in the same household or pay the extra member fee. While the change has caused many users to reconsider whether a subscription is worth it at all, Kean Birch raises the question of whether the business models and monetization strategies of digital firms are viable in the long-run.
Canadian house sales hit record low
National home sales hit a 14-year low in January, declining for the 11th consecutive month. Wth borrowing costs at their highest level in years, most economists predict that home prices will continue to decline in the first half of the year, as borrowers deal with the spike in mortgage rates. As Rachelle Younglai reports, the number of sales in January was 3-per-cent lower than December after removing seasonal influences. And the home price index, which excludes sales of highly priced properties, was $714,700 last month, down 1.9 per cent from December. But the real-estate industry is seeing a different picture, where would-be buyers are trickling back into the market.
High oil prices sends Alberta into a drilling frenzy
During this year’s winter drilling season, Alberta’s oil and gas producers have deployed more rigs across the province than at any time since 2018, sitting at 187 rigs, about 15-per-cent more than last year. According to Jason Kirby in this week’s Decoder, drillers are trying to capitalize on high oil prices, a stark rebound from 2020 when oil prices collapsed amid pandemic lockdowns and the number of rigs across Canada fell to just 13. The biggest hurdle facing the industry? Finding enough workers to operate the rigs.
Cash in on credit-card rewards now
If you’ve been stockpiling rewards points on your credit cards, consider using them now. According to Rob Carrick, there’s a long-standing pattern of outstanding rewards being ratcheted down at some point. While we’re in a golden age of rewards – so many choices for earning a pile of cash back and travel points – it’s unclear whether that will last through tough economic times. Credit cards seem to be losing some of their dominance as a preferred way to pay for things. They accounted for 59 per cent of payments in 2021, then dropped to 55 per cent last year – the first decline for credit cards in the 11 years that’s being driven by rising costs.
A recession is coming – but not as bad as you think
Canada is on track for a recession this year, but Bank of Canada Governor Tiff Macklem believes it won’t be as severe as other downturns in the past few decades. As Mark Rendell reports, the central bank is forecasting near-zero economic growth through the first three quarters of 2023, as higher interest rates constrain consumer spending and business investment. Despite a healthy labour market, the bank expects the unemployment rate – which remains near an all-time low – to rise in the coming months. Earlier this week, Macklem reiterated that the BoC does not plan to raise interest rates further, after the eighth consecutive rate hike in 11 months brought the policy rate to 4.5 per cent in January, but that it will reconsider if inflation doesn’t drop as expected.
Four RRSP tips to plan for retirement
With the contribution deadline for RRSPs just around the corner on March 1, Canadians may be thinking about stowing away some extra cash for retirement savings. Tax expert Tim Cestnick offers four tips to consider to improve the outlook of your RRSP savings including understanding just how much you’ll need, the benefits of borrowing for catch-up contributions and paying attention to asset location.
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