Netflix password sharing is priced-in

I was chatting with a few friends (late 20s, tech workers) and every single one has cancelled their Netflix account after the new anti-password sharing news and uncertainty.

They were happy with the 13€ or 18€ plans when they were taking into account that they can be shared on 4 devices. It kept them paying for the service because they were sharing it with less financially stable friends.

Now that there is talk about that not being permitted, the pricing didn't make sense anymore.

How is Netflix so blind to this? They think they will gain those recipients of shared accounts, but in reality they're losing the ones who are actually paying for it.