Netflix Records Highest US Sign-Ups After Password-Sharing Crackdown
Key Highlights :
The streaming giant Netflix recently implemented a password-sharing crackdown that came into effect on May 23. According to data from research firm Antenna, the company has seen a significant jump in its daily U.S. sign-ups since the change. In fact, the four largest days of U.S. user acquisition since Antenna began tracking the company have been after the crackdown came into effect.
In a bid to make money in a saturated market and a tough economy, Netflix had decided to regulate the sharing of account passwords with friends and family. It had estimated that more than a 100 million households had supplied their log-in credentials to people outside their homes. Under the new rules, U.S. users can add a member outside of their homes for an additional fee of $8 per month.
The company’s calculations seem to have paid off as the company recorded nearly 100,000 daily sign-ups on both May 26 and May 27, according to Antenna. Netflix has since expanded its crackdown to more than 100 other countries. The recent spike also exceeded levels seen during the initial U.S. COVID-19 lockdowns in March and April 2020, according to Antenna.
The data was sourced from third-party data collectors that track online purchase receipts, credit, debit and banking data details with permissions. The news sent shares of the company up 2.3% to $418.92 in early trading.
It is clear that Netflix’s decision to regulate password-sharing has been a successful one. The company has seen a significant jump in its daily U.S. sign-ups since the change, and the recent spike has even exceeded levels seen during the initial U.S. COVID-19 lockdowns. This is a great example of how a company can adapt to changing market conditions and find new ways to make money.
