Millions Sign Up for Netflix After Password-Sharing Crackdown
By Movieguide® Contributor
While many worried about what cracking down on password sharing would mean for Netflix, the change has resulted in millions of new subscription sign-ups.
Since limiting account users to those living in one household, Netflix has seen a significant rise in new member sign-ups, many of whom are opting for the new ad-tier subscription level. According to research group Antenna, around 23% of users who signed up in July chose the cheaper option.
“The company estimated that more than 100 million households had shared their log-in credentials with friends and family outside their homes. This has led analysts to expect that about 50 million users will ultimately create their own accounts,” Reuters reported.
In total, Netflix added 2.6 million new users in July, building on its already industry-dominant 238.39 million subscriber count. In June—the first full month since the password-sharing crackdown—just under 3.5 million new accounts signed up with the platform, more than doubling what the streaming service saw the previous month.
“While we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,” Netflix said. “We are revenue and paid membership positive vs. prior to the launch of paid sharing across every region in our latest launch.”
Recognizing the success of Netflix’s password-sharing crackdown, Disney has recently announced they will do the same while simultaneously increasing the price of their service.
Movieguide® previously reported:
Policies and price changes like this are expected to continue as these companies work to become profitable. Another tactic being implemented is cracking down on password sharing to force more people to sign up for the product.
Netflix made headlines earlier this year when it announced it would no longer allow password sharing, requiring the users on an account to connect to a “home Wi-Fi.” Disney recently announced they would be following suit and also cracking down on password sharing.
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