Netflix’s recent crackdown on password-sharing seems to be yielding results in the United States. Data analytics company Antenna has reported a significant increase in subscriber numbers immediately following the announcement of Netflix’s paid sharing policies on May 23rd.
According to Antenna, the period following the notification saw a notable rise in average daily sign-ups, reaching 73,000. This figure represents a remarkable 102 percent increase compared to Netflix’s previous 60-day average.
Furthermore, on both May 26th and May 27th, Netflix attracted an additional 100,000 subscribers. This influx of new subscribers surpasses the growth experienced by Netflix during the lockdowns in March and April 2020.
Netflix’s new password-sharing policies require subscribers to pay an additional $7.99 monthly to share their account with up to two people outside their household. While Netflix anticipated a potential “cancel reaction” from users in response to this change, Antenna’s data shows that the number of sign-ups outweighed cancellations during the period analyzed.
Although Netflix had already implemented paid sharing in several countries outside the US, including Canada, New Zealand, Portugal, and Spain, it is too early to determine the full impact of the password-sharing crackdown in the US. More insights into the outcome of these measures will likely be revealed when Netflix reports its earnings results next month. Opinions among users appear to be divided, as some have chosen to cancel their shared subscriptions, while others have opted to pay the additional fee to include more family members in their accounts.
The subsequent increase in Netflix sign-ups exceeded the growth observed during the pandemic lockdowns in 2020. While the long-term effects of this crackdown remain uncertain, the company’s decision seems to have yielded initial positive outcomes.
