Netflix just sacrificed a pawn… and captured the board.

In mid-2023, Netflix rolled out its password-sharing crackdown across the US and more than 100 countries. Accounts were now limited to one household, with extra members charged about $8 a month. The backlash was immediate.. some cancellations, social media outrage. But the results? Nearly 100,000 US sign-ups per day during launch week, over 22 million new paying subscribers in the second half of 2023, and record highs in both revenue and profit by mid-2025. The move added roughly 55 million paying members in two years and inspired competitors like Disney+ and Max to follow suit.

In chess, a gambit is an opening where you sacrifice a pawn or piece to gain a superior position later. You give something up now — material or momentum — to control the board in the midgame. Netflix sacrificed goodwill from some sharers to claim a much bigger prize: sustainable revenue growth, stronger market control, and a subscriber base that’s harder for rivals to attack. The company endured the short-term pain with a clear plan to convert it into lasting advantage.

For leaders, the lesson is simple but not easy. Sometimes the winning move means letting go of immediate comfort to secure a stronger future. That requires preparation, courage, and the discipline to follow through. Like a gambit, the sacrifice only works if you know exactly how to capitalise once the board changes.

If you want your organisation to develop the foresight and nerve to make bold strategic moves, my chess-based strategy workshops can help you and your team to see the board and your business differently.