Netflix subscriptions rise amid password-sharing attack

The Netflix login page displayed on a laptop computer and the Netflix logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on January 2, 2023.

Jakub Porzycki | Nurphoto | Getty Images

The Netflix crackdown on password sharing is in its early days in the US, but it appears to be having the effect the streamer was looking for – a boost to its subscriber base.

Since notifying members in late May of the new password-sharing policy, Netflix has had its four biggest single days of US customer sign-ups since data provider Antenna began tracking the service. In that time, Netflix has seen nearly 100,000 daily sign-ups on two of the days, according to the report from Antenna.

On May 23rd, Netflix began sending out emails to members saying they were changing their sharing policy, namely that accounts should only be shared within the same household.

“Your Netflix account is for you and the people you live with — your household,” the company said in an email sent to members since then.

As part of the new policy, members have two options for people who use their passwords outside of their household. Either transfer the profile to the person outside the household so the person can start a new membership that they pay for on their own, or the member pays an additional fee of $7.99 per month per person outside the household.

Since the email began rolling out, average daily signups for Netflix reached 73,000, a 102% increase from the previous 60-day average, surpassing the surge in signups during the first shutdowns of the pandemic, according to Antenna.

Read more: Netflix’s expected crackdown on password sharing puts students on edge

Streaming services such as Netflix had experienced a large increase in subscribers in the early days of the pandemic when consumers were at home during shutdowns. However, this subscriber growth slowed down in the following years.

In 2022, Netflix began to see subscriber growth stagnate, and like other media companies, began to find ways to increase revenue. In addition to cracking down on password sharing, Netflix also introduced a cheaper, ad-supported tier.

While Netflix stock took a hit after reporting its first subscriber loss in a decade last year, it has rebounded since then with the introduction of password-sharing policies and ad-supported streaming. The stock hit a 52-week high on Friday, and is up more than 40% so far this year.

The company has said that more than 100 million households share accounts – about 43% of its global user base – which affects its ability to invest in new content.

Netflix began rolling out password sharing guidance in international markets earlier this year. It had delayed the crackdown on password sharing in the US from the first quarter to the second quarter.

Source link

Back to top button

mahjong slot