Yahoo Finance Netflix sees jump in subs as it begins to curb password sharing in US, says report
Despite the negative responses from consumers about Netflix’s password-sharing rules, the company appears to be successful with its plan. According to a new report from research firm Antenna, Netflix gained nearly 100,000 daily sign-ups on May 26 and May 27, just days after the streaming giant announced to its U.S. subscribers that it had begun to crack down on password sharing.
On May 23, the company told consumers that it has started to charge password sharers $7.99 per month for an additional membership for people living outside a member’s household. In February, Netflix launched password-sharing rules outside the U.S., such as in Canada, New Zealand, Spain and Portugal.
During the same period of the announcement, Antenna found that the average daily sign-ups for the streaming service were 73,000 sign-ups per day, a 102% jump from the previous 60-day average. Notably, the figure exceeded the Netflix total of sign-ups that Antenna observed during the initial Covid lockdowns.
Netflix also saw an increased number of cancelations since the May 23 announcement. The company expected these results, believing the setback would only be temporary.
According to Antenna, however, the cancelations weren’t enough to offset the number of sign-ups. The ratio of sign-ups to cancels was up 25.6% in contrast to the prior 60-day period.
Time will tell just how substantial Netflix’s password-sharing crackdown will be in the U.S., but the initial findings look promising. Netflix previously estimated that over 100 million households share their accounts with others, with 30 million being in the U.S. and Canada.
