Netflix’s crackdown on password sharing sees a 102% increase in new signups
Netflix’s password-sharing crackdown scores subscriber windfall as daily logins DOUBLE: Streaming giant says more than 100 MILLION people around the world have borrowed logins
- Netflix saw a surge in new signups after launching a crackdown on password sharing
- Daily signups approached 100,000 in the two days following the move
- Spike even surpassed the peaks recorded in the early days of the pandemic
Daily logins to Netflix rose in the first few days after the streaming giant’s password-sharing crackdown went into effect, new data shows.
After it began warning subscribers about the crackdown on May 23, Netflix had its four biggest days of user acquisition in the US, according to research firm. Antennawhich has been keeping the data since 2019.
On both May 26 and May 27, Netflix had nearly 100,000 daily logins, and over the four-day period, the average daily logins reached 73,000, up 102 percent from the previous 60-day average.
The news sent shares of the company up nearly 3 percent to $421.50 during midday trading on Friday.
Daily logins to Netflix rose in the first few days after the streaming giant’s crackdown on password sharing went into effect, new data shows
Arnold Schwarzenegger can be seen in the new Netflix action series Fubar, currently one of the top 10 shows on the streaming service
Prior to the crackdown, Netflix had estimated that more than 100 million households had provided their credentials to people away from home.
Last month, to boost sales in a saturated streaming market, Netflix launched its crackdown on password sharing — a drastic turnaround for a company that once tweeted “Love is sharing a password.”
Under the new rules, US users can add a member away from home for an additional fee of $8 per month.
The strategy appears to be paying off, as application numbers soared in late May, even surpassing previous record numbers in the early days of COVID-19 lockdowns, according to Antenna data.
Antenna noted that while account cancellations also increased during the May 24-27 period, they did not rise as fast as new signups.
The ratio of signups to cancellations since May 23 is up 25.6 percent compared to the previous 60-day period, the company said.
To boost sales in a saturated streaming market, Netflix launched its crackdown on password sharing last month
Netflix has certainly changed its tune since tweeting “Love is sharing a password” in 2017
Antenna obtains its credentials from third-party data collectors who maintain online purchase receipts, credit, debit and bank information with the customer’s consent.
Netflix, which has expanded its crackdown to more than 100 other countries, did not immediately respond to a request for comment.
Netflix said last year it was going to limit account sharing and was testing different approaches in some markets.
In January, Netflix co-CEO Greg Peters also acknowledged that the crackdown could bring more subscriber cancellations.
“It’s worth noting that this won’t be a widely popular move,” Peters advised investors.
At the end of March, Netflix had 232.5 million paying customers worldwide.