Netflix Sees Huge Growth In Subscribers After Password-Sharing Crackdown - Report

Netflix also lost lots of subscribers, but more people signed up than left after the changes.


Netflix recently started seriously cracking down on password-sharing in the United States by forcing people on a shared account who don't live in the same house to sign up for their own or leave, and, surprising no one, Netflix subscriber numbers are reportedly increasing as a result.

Research company Antenna put out a study that said after the password-sharing changes went into effect in late May, Netflix had the four single-largest days of US subscription additions since 2019. Netflix is said to have added almost 100,000 new sign-ups on May 26 and May 27.

Average daily sign-ups after the password-sharing changes jumped by 102% compared to Netflix's previous 60-day average. New sign-ups were reportedly higher than even the spikes that came during COVID lockdowns.

The number of membership cancellations also increased after the password-sharing changes went into effect, but not enough to offset the overall increase in new membership sign-ups, the report said.

All of these figures come from a third-party and should be considered to be unofficial and unconfirmed. Netflix will hold its first earnings report since the password-sharing crackdown in July, which is when the company may provide further insight and data about the change.

As per the new rules, anyone who was previously benefitting from password-sharing will have to sign up for their own account or move on. Account owners who are feeling generous can spend $8/month on top of their existing membership to keep any non-paying people on their account.

For those who do decide to get their own account, Netflix offers a profile-transfer feature that carries over personalized content like lists and recommendations.

A reported 100 million Netflix accounts globally share passwords, so Netflix cracking down on makes sense and is a move to help the company make more money. Netflix co-CEO Greg Peters said during an earnings briefing that some people using a shared account are watching as much as the main account owner, and have a "very strong likelihood" of converting to a paid account. Now it looks like that is exactly what's happening.

Netflix's password-sharing crackdown has been a long time coming, and these changes were already made in various other countries and regions around the world before the US.

Netflix memberships in the US start at $7/month for a plan with ads, $10/month for the Basic plan with no ads, $15.50/month for the Standard plan, and $20/month for the Premium plan.

In other Netflix news, the company is finally closing its DVD-by-mail service at the end of September 2023.

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