U.S. Netflix Subscriptions Surge as Password Sharing Crackdown Begins
According to data from research firm Antenna, there has been a surge in daily sign-ups for Netflix in the United States since May 23, when the company implemented its crackdown on password-sharing.
As a result of the news, the company’s shares rose 2.3% to $418.92 in early trading.
Looking for new ways to make money in a saturated market and a tough economy, Netflix moved to regulate the sharing of account passwords with friends and family — a sharp turnaround for a company that once tweeted, “Love shares the password.”
Netflix had estimated that more than 100 million households had provided their login information to people outside the home. Under the new rules, US users can add a member outside their home for an $8 monthly fee.
Its calculations seem to have paid off, as the company recorded nearly 100,000 daily signups on both May 26th and May 27th, according to Antenna.
Netflix, which has expanded its crackdown to more than 100 other countries, did not immediately respond to Reuters’ request for comment.
The streaming video pioneer saw the four largest US user acquisition days since the change took effect in the 4-1/2 years that Antenna has covered the company.
The recent spike also exceeded the levels seen during the original U.S. COVID-19 lockdowns in March and April 2020, Antenna says. Antenna obtains data from third-party data collectors that track online purchase receipts, credit, debit and banking information with permission.
