Netflix Sees Jump in Subs as it Begins to Curb Password Sharing in US – In spite of the negative feedback from customers regarding Netflix’s policy on password-sharing, the company seems to be achieving success with its strategy. According to a recent report by research firm Antenna, Netflix experienced a surge of nearly 100,000 daily sign-ups on May 26 and May 27, shortly after announcing its crackdown on password sharing to its U.S. subscribers.
On May 23, Netflix informed its users that it had commenced charging $7.99 per month for an additional membership to individuals who share passwords and reside outside the account holder’s household. In February, Netflix had already implemented password-sharing regulations in countries like Canada, New Zealand, Spain, and Portugal. Also, Antenna’s findings revealed that the average daily sign-ups for the streaming platform during that period reached 73,000 per day, indicating a remarkable 102% surge compared to the previous 60-day average.
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It is worth mentioning that this number surpassed the total sign-ups observed by Antenna for Netflix during the initial Covid lockdowns. In addition, Netflix witnessed a rise in the number of cancellations following the announcement on May 23.
However, the company anticipated these outcomes and remains optimistic that this setback will be transient in nature. As per Antenna’s findings, the cancelations weren’t enough to offset the number of sign-ups.
In fact, the ratio of sign-ups to cancellations increased by 25.6% compared to the previous 60-day period. It remains to be seen how impactful Netflix’s efforts to crack down on password-sharing will be in the United States, but the initial results appear promising. Netflix had previously estimated that more than 100 million households share their accounts with others, with 30 million of them located in the United States and Canada.