The Netflix login page displayed on a laptop screen and the Netflix logo displayed on a phone screen can be seen in this illustration photo taken in Krakow, Poland on January 2, 2023.
Jakub Porzycki | Nurphoto | Getty Images
The Netflix The crackdown on password sharing is still in its infancy in the US, but it seems to be having the effect the streamer was looking for: a boost to its subscriber base.
Since Netflix notified its members of its new password-sharing policy at the end of May, Netflix has had its four largest days of US customer sign-up since data provider Antenna began tracking the service. In that time, Netflix has seen nearly 100,000 daily logins on two of the days, according to the report from Antenna.
Netflix started on May 23 to broadcast emails to members that it was changing the sharing guidelines, which were that accounts could only be shared within the same household.
“Your Netflix account is for you and the people you live with — your household,” the company said in an email that has since been sent to members.
As part of the new policy, members have two options for those who use their passwords outside of their household. Transfer the profile to the person outside their household so that the person can start a new membership for which they pay themselves, or the member pays an additional fee of $7.99 per month per person outside their household.
Since the email rolled out, Netflix has averaged 73,000 daily logins, a 102% increase over the 60-day average, surpassing the spike in logins during the pandemic’s initial lockdowns, according to Antenna.
Read more: Netflix’s expected crackdown on password sharing is putting students on edge
Streaming services like Netflix experienced a large increase in subscriber numbers in the early days of the pandemic, when consumers were at home during the lockdowns. However, that growth in the number of subscribers stagnated in the following years.
In 2022, Netflix began to see subscriber growth stagnate, and like other media companies, it began to focus on ways to generate more revenue. In addition to tackling password sharing, Netflix also introduced a cheaper ad-supported tier.
While Netflix’s stock took a hit after reporting its first in a decade loss of subscribers last year, it has since bounced back with the introduction of password-sharing guidelines and ad-supported streaming. The stock reached a 52-week high on Friday and is up more than 40% since the start of the year.
The company has said that more than 100 million households share accounts – about 43% of its global user base – which affects its ability to invest in new content.
Netflix began rolling out password sharing guidelines in international markets earlier this year. It had postponed its crackdown on password sharing in the US from Q1 to Q2.
