Netflix experienced a substantial increase in daily sign-ups immediately following the implementation of its password-sharing crackdown on May 23. As per data collected by research firm Antenna, the first few days after the crackdown saw a notable rise in new Netflix subscriptions within the United States. This strategic move by Netflix to regulate the practice of sharing account passwords reflects the company’s pursuit of new revenue streams in a saturated market and challenging economic conditions.
Once known for its lighthearted approach to password sharing, Netflix made a significant policy reversal in response to a market saturated with shared login credentials. This change was a departure from their previous social media post stating, “Love is sharing a password.” The streaming giant estimated that over 100 million households had generously shared their log-in information with individuals outside their immediate families. In an effort to curb this practice, Netflix introduced new guidelines allowing U.S. users to include additional members outside their households for an extra fee of $7.99 per month.
Netflix’s decision to enforce stricter account-sharing regulations appears to have yielded positive results, evident from the surge in daily sign-ups witnessed after the policy change. Antenna’s data reveals that on both May 26 and May 27, the company recorded close to 100,000 new subscriptions per day. These figures mark the highest number of daily sign-ups within the United States since Antenna began monitoring Netflix’s performance over four and a half years ago. Furthermore, this recent spike surpassed the sign-up levels observed during the initial COVID-19 lockdowns in March and April 2020.
While Netflix’s password-sharing crackdown initially focused on the United States, the company has extended its efforts to over 100 other countries. The impact of these regulatory measures on a global scale remains to be seen, as Netflix continues its drive to secure new revenue streams and maintain its dominance in the highly competitive streaming market. At the time of writing, Netflix has yet to respond to Reuters’ request for comment on the recent surge in sign-ups.
Antenna, a respected research firm, compiled the data used to analyze the effects of Netflix’s password-sharing crackdown. The firm collects information from third-party data collectors who track online purchase receipts, credit, debit, and banking data details with explicit permissions. Antenna’s comprehensive coverage of the company spans over four and a half years, providing valuable insights into Netflix’s user acquisition trends.