Netflix subscriptions soar amid password-sharing campaign

The Netflix login page is seen on a laptop screen and the Netflix logo displayed on a phone screen in this pictogram taken in Krakow, Poland on January 2, 2023.

Jacob Borzycki | Norphoto | Getty Images

Netflix’s crackdown on sharing passwords was in its early days in the US, but it appears to have an effect the streamer was looking for – a boost to its subscriber base.

Since alerting its members in late May of its new password-sharing policy, Netflix has had four single days to sign up for US customers since data provider Antenna began tracking the service. In that time, Netflix has seen nearly 100,000 sign-ups per day in two days, according to a report from the antenna.

On May 23rd, Netflix launched send Emails to members say he was changing his sharing guidelines, namely that accounts should only be shared within the same household.

“Your Netflix account is for you and the people you live with – your family,” the company said in an email sent to members since then.

As part of the new policy, members have two options for people who use their passwords outside their home. Either you transfer the profile to someone outside of their household so that person can start a new membership that they pay for themselves, or the member pays an additional fee of $7.99 per month for each person outside their home.

Since the email went live, Netflix has averaged 73,000 daily subscriptions, up 102% from the previous 60-day average, which outpaced the spike in subscriptions during the pandemic’s initial lockdowns, according to Antenna.

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Read more: Netflix’s expected password-sharing campaign is putting college students on edge

Streaming services like Netflix saw a significant increase in subscribers in the early days of the pandemic when consumers were at home during lockdowns. However, subscriber growth slowed in the following years.

In 2022, Netflix is ​​starting to see subscriber growth stagnate, and like other media companies, it is starting to look for ways to increase revenue. In addition to cracking down on password sharing, Netflix has also introduced a cheaper, ad-supported tier.

While Netflix stock took a hit after reporting its first subscriber loss in a decade last year, it has since rebounded with the introduction of password-sharing guidelines and ad-supported streaming. Its stock hit a 52-week high on Friday, and is up more than 40% since the start of the year.

The company said more than 100 million households subscribe to the accounts — about 43% of its global user base — which affects its ability to monetize new content.

Netflix began rolling out its password sharing guidelines to international markets earlier this year. It delayed its crackdown on password sharing in the US from the first quarter to the second quarter.

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