Netflix subscriptions have risen in the wake of the company's password-sharing crackdown
The streaming giant began rolling out its new policy in the US on May 23, and it appears to be having an impact. According to data from streaming analytics company Antenna, Netflix saw its four biggest days of subscriber additions in the four-and-a-half years that the firm has been tracking the service.
Since letting its users know about its new password sharing policy in late May, Netflix has had four of its single-largest U.S. client signup days since data company Antenna started monitoring the business. The boost comes as Netflix is facing increasing competition from other streaming services, such as Disney+, HBO Max, and Amazon Prime Video.
According to the Antenna report, during that time, Netflix saw roughly 100,000 daily signups on two different days.
The company has lost subscribers for two consecutive quarters, and it is looking to crack down on password sharing as a way to boost revenue.
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On May 23, Netflix started informing subscribers via emails that the rules for account sharing were changing to allow for only account sharing within the same household.
“Your Netflix account is for you and the people you live with — your household,” the company said in an email that has been sent to members since then.
Members who find their credentials being used outside of their home have two options under the new policy. The member can either pay an additional $7.99 per month for each person outside of their household or transfer the profile to the person outside of their household so that individual can start a new subscription that they pay for themselves.
Some customers, however, have criticized the policy, saying it is unjust to charge them more for sharing their account with family and friends.
Netflix has defended the policy, saying that it is necessary to “make sure that everyone who uses Netflix is paying their fair share.”
It remains to be seen whether Netflix’s password-sharing crackdown will be successful in boosting revenue. However, the early signs suggest that it is having a positive impact on the company’s subscriber numbers.
Antenna reports that since the email started going out, there have been 73,000 average daily signups for Netflix, a 102% rise from the prior 60-day average, surpassing the peak in signups during the initial lockdowns of the pandemic.
Although Netflix’s stock suffered after the company announced its first subscriber decline in ten years last year, it has since recovered thanks to the implementation of password-sharing policies and ad-supported streaming. On Friday, its stock reached a 52-week high and has since increased by more than 40%.
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