Netflix’s recent crackdown on password sharing may have led some users to cancel their accounts, but the company’s efforts have proved to be beneficial. According to data from analytics firm Antenna, Netflix has experienced a significant increase in account sign-ups since introducing paid account sharing in the US and other regions in late May, with its four most significant days of sign-ups for single customers since 2019. Although there were cancellations during that time, the increase in sign-ups exceeded those figures, with a growth rate of 102% compared to the previous average. This increase even surpassed the growth during COVID-19 when people were confined to their homes and looking for things to watch.
Netflix recently updated its sharing guidelines and started sending emails to members about the new policy. As per the new guidelines, accounts can only be shared within the same household. Under the new password-sharing rules, Netflix offered subscribers two choices for those who use their passwords outside of their household. The first option is to transfer the profile to the individual outside the household, allowing them to create a new membership and pay for it independently. The second option is for the member to pay an additional fee of $7.99 per month for every person outside their household.
The streaming giant experienced a slowdown in subscriber growth in 2022, with over 100 million households, or 43% of its user base, sharing accounts, which negatively impacted its ability to invest in new content. However, with the new rules, it appears to be converting some of them into paying customers.
All in all, the company’s efforts to combat password sharing are paying off, and it is also introducing measures to increase revenue, such as a more affordable, ad-supported subscription option. This smarter and more creative approach will help Netflix’s ability to invest in new content and bring an even better streaming experience to its users.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
