Netflix Gains 6 Million Subscribers Despite Password Sharing Restrictions
Netflix is beginning to see positive results from its efforts to combat password sharing. The company has observed a significant increase in its subscriber base after implementing measures to prevent users from sharing their accounts with individuals who are not part of their household.
The streaming company added almost 6 million paying subscribers in the second quarter of 2023, 8 percent. The results confirm previous reports from third-party data that the tighter restrictions would work.
In a letter to shareholders, the company said its effort to stop password sharing has not led to mass cancellations, but has instead encouraged more people to sign up for their own accounts. “Cancellation response was low, and while we’re still in the early stages of monetization, we’re seeing a healthy conversion of borrower households to full Netflix memberships as well as the rollout of the add-on feature,” the company wrote.
In addition to limiting account sharing, the company has begun offering “paid sharing,” which allows subscribers to pay to add an “extra member” to their account for $8 a month. This option is now available in over 100 countries, according to Netflix. The company has also streamlined its plans, confirming that it was withdrawing its $10 “basic plan” in the US and UK after first removing the plan in Canada.
Now Netflix says it will continue to restrict password sharing in the few remaining countries where it has not yet done so, including India, Indonesia, Kenya and Croatia. The company notes that it will not offer its “Additional Member” option in these regions because it has already reduced prices in many of these countries. Instead, the company says people can use its tool to transfer their profile to a new account.
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