Millions of Netflix members are furious because a new password-sharing barrier appears to have had the desired result. The streaming service has had its highest increase in new subscribers in four years as a result of the policy, which is intended to stop viewers from sharing their accounts with anyone outside of their homes.
The best four-day period since 2019
A third-party tracker found that Netflix had its best four-day period since 2019 for new subscriber growth in the US since the start of its crackdown on password sharing. The figures will probably show the business that it made the right choice, and they may persuade rival streaming services to do the same. Before the new policy, up to one-third of US Netflix members may have disclosed their password to a stranger. The business began informing customers via emails on May 23 that account scroungers would need to pay more money to continue watching Netflix.
The usage of each subscriber’s primary household account, device IDs, and IP addresses are all tracked by Netflix. It now costs $7.99 per month in the US and £4.99 in the UK to add a new user who does not share the account holder’s IP address. The premium 4K tier of the service allows users to add an additional two users. Additionally, Netflix now demands that users sign in from their residences once every month. The business recommends account holders to check in from home right before leaving so they can stream while on the go. After being away from home for more than 31 days, there doesn’t appear to be a method to continue viewing Netflix.
Netflix subscribers grow after password-sharing crackdown
The stock price increased by about 10%
Antenna, a provider of streaming analytics, reports that between May 25 and May 28, there were an average of 73,000 new subscriptions added per day in the US, which is a higher increase than any seen since the firm started keeping statistics in 2019. Following the crackdown, there was a spike in cancellations as well, but the rise in signups far surpassed it. During this time, Netflix’s stock price increased by about 10%, and it has since significantly increased. Only one other significant increase in subscriptions was noted by Antenna, and it occurred between May and April 2020, just after the start of the pandemic lockdowns.
Antenna keeps track of customers who open accounts and make payments through websites, mobile apps, and set-top boxes. Free trials, complimentary hotel access, corporate subscriptions, and subscribers in US territory are not included in the company’s calculations. To estimate the number of users who receive access through mobile phone plans, a different methodology is used.