9-6-2023 (CALIFORNIA) Daily sign-ups for Netflix in the United States have surged following the streaming giant’s crackdown on password-sharing, which was implemented on May 23, according to data from research firm Antenna. This news has resulted in a 2.3% increase in the company’s shares, reaching $418.92 during early trading.
In an effort to explore new revenue streams amidst a saturated market and challenging economic conditions, Netflix decided to enforce stricter regulations on the sharing of account passwords with friends and family. This move marks a significant shift for the company, considering its previous lighthearted tweet stating, “Love is sharing a password.”
Netflix estimated that over 100 million households had shared their login credentials with individuals residing outside their homes. Under the new policy, US users can now add a member outside their household for an additional monthly fee of $8.
The company’s calculations seem to have paid off, as Antenna reported nearly 100,000 daily sign-ups on both May 26 and May 27. It is worth noting that Netflix has extended its password-sharing crackdown to over 100 other countries. However, the streaming video pioneer has not yet responded to Reuters’ request for comment on these recent developments.
According to Antenna, these past few days have witnessed Netflix’s largest increase in US user acquisition since the company’s inception, surpassing even the levels observed during the initial COVID-19 lockdowns in March and April 2020. Antenna collects data from third-party sources that track online purchase receipts, credit and debit card transactions, and banking details, with proper permissions in place.
