Netflix Sees Surge in Sign-Ups as Crackdown on Password Sharing Begins
Netflix experienced a surge in new registrations in the United States following the implementation of its measures to combat password sharing. Research firm Antenna’s data revealed this trend, leading to a 2.3% increase in the company’s shares to $418.92 during early trading.
In an effort to find alternative revenue streams in an increasingly competitive market and challenging economic conditions, Netflix took the unexpected step of regulating the sharing of account passwords with friends and family. This decision marks a significant departure from the company’s previous stance, as evident in their tweet~ Love is sharing a password.
Netflix estimated that over 100 million households had shared their login credentials with individuals outside their immediate households. Under the new guidelines, U.S. users can include an additional member from outside their homes for an extra monthly fee of $8.
It appears that their calculations have proven fruitful, as Antenna reported nearly 100,000 new sign-ups per day on both May 26 and May 27. Furthermore, Netflix extended its crackdown to more than 100 other countries. At the time of this response, Netflix had not yet provided a comment in response to a request from Reuters.
This change in policy resulted in the highest number of new U.S. users in a 4-1/2 year period, as observed by Antenna, a company monitoring Netflix’s progress. Notably, the recent surge surpassed the levels seen during the initial COVID-19 lockdowns in March and April 2020. Antenna sources data from third-party collectors who track online purchase receipts, as well as credit, debit, and banking details with appropriate permissions.
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