In a surprising turn of events, data from research firm Antenna has revealed that daily sign-ups for Netflix in the United States have skyrocketed in the first few days after the streaming giant implemented its password-sharing crackdown on May 23. The news has sent the company’s shares up 2.3% to $418.92 in early trading.
Seeking new avenues for revenue generation amidst a saturated market and challenging economic conditions, Netflix made the decision to regulate the sharing of account passwords with friends and family, marking a significant shift for a company that had previously embraced password-sharing as an act of love.
Netflix’s internal estimates suggested that over 100 million households had been sharing their login credentials with individuals outside their homes. Under the new rules, U.S. users are now allowed to add members from outside their households for an additional fee of $8 per month.
This strategic move seems to have paid off handsomely for the company, as Antenna’s data reveals that Netflix experienced nearly 100,000 daily sign-ups on both May 26 and May 27. The streaming giant’s four largest days of user acquisition in the United States were observed after the implementation of the password-sharing crackdown, surpassing even the levels witnessed during the initial COVID-19 lockdowns in March and April 2020.
While Netflix has extended its crackdown to more than 100 other countries, the company has not responded immediately to a Reuters request for comment.
Antenna, which gathers data from third-party collectors tracking online purchase receipts, credit and debit transactions, and banking data with proper permissions, has been monitoring Netflix for the past 4-1/2 years. The recent surge in sign-ups reflects the effectiveness of Netflix’s measures to curb password sharing while capitalizing on increased revenue opportunities.
As Netflix continues to navigate the streaming industry, these developments serve as a testament to the company’s ability to adapt and thrive in a rapidly evolving market.