Netflix has gained subscribers since implementing a password sharing crackdown in the United States and 100 other countries and territories. The company saw it’s four biggest days for sign-ups in the United States since the crackdown began.
Netflix, the pioneer of streaming content, experienced a dip in revenue in previous quarters due to increased competition and market saturation. To improve it’s revenue, the company started offering an affordable ad-supported plan in select countries. Additionally, Netflix introduced a new policy that prohibits sharing accounts between different households. To enforce this policy, the company stated that it would block accounts whose passwords have been shared across multiple households. The password sharing crackdown officially began on May 23 in the United States and other 100 countries.
According to the analytics platform Antenna, Netflix saw 100,000 daily sign-ups on May 26 and May 27, marking it’s biggest single-day increase since the Covid-19 lockdown in 2019 and 2020. Yahoo Finance reported that the company’s shares rose nearly 3% on Friday following the release of Antenna’s report.
Antenna’s report indicates that Netflix had it’s four biggest days for sign-ups in the United States in four and a half years. The average daily sign-ups in the first four days since the password sharing crackdown began reached 73,000, which is approximately 102% higher than the average daily sign-ups in the previous sixty days. The antenna also noted that, while some subscribers have canceled their subscriptions since the crackdown began, the number is significantly lower than the number of new sign-ups.
Netflix wrote on it’s official blog on May 23, “A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices”. The company said that users can share their account credentials with someone not part of their household for an additional fee of $7.99 monthly.
It is important to note that these numbers have not been officially confirmed by Netflix. The company is expected to provide an exact impact of the password sharing crackdown in it’s next quarterly earnings report, which is scheduled for release in July. Therefore, we will have to wait to see the extent of the revenue increase resulting from the new sign-ups.
Last year, Netflix started the password sharing crackdown as a trial in Latin America. The company then implemented it’s new policy on password sharing in select countries, including Spain, Canada, Portugal and New Zealand, in February of this year.
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