Netflix gets 100K daily sign-ups after password-sharing crackdown
Netflix’s recent crackdown on password-sharing seems to be paying off as data from research firm Antenna shows daily US sign-ups have jumped in the first few days since the new rules came into effect on May 23. The streaming giant had estimated that more than 100 million households had supplied their log-in credentials to people outside their homes, prompting the move to regulate password sharing with friends and family. Under the new rules, US users can add a member outside of their homes for an additional fee of $8 per month. This change appears to be welcomed by the public as the company recorded nearly 100,000 daily sign-ups on both May 26 and May 27, exceeding levels seen during the initial US COVID-19 lockdowns in March and April 2020. Shares of the company have also risen by 2.3% to $418.92 as a result of the positive data.
FAQs
Q: Why has Netflix moved to regulate the sharing of account passwords?
A: The move was made in an attempt to find new ways to make money in a saturating market amidst a tough economy. The company estimated that over 100 million households had supplied their log-in credentials to people outside their homes.
Q: What are the new rules surrounding password-sharing on Netflix?
A: Under the new rules, US users can add a member outside of their homes for an additional fee of $8 per month.
Q: How has the public reacted to the new rules?
A: The recent spike in daily sign-ups suggests that the public has welcomed the new rules.
Q: Is Netflix expanding its password-sharing crackdown to other countries?
A: Yes, Netflix has expanded its crackdown to more than 100 other countries.
Q: How did Antenna source its data?
A: Antenna sources data from third-party data collectors that track online purchase receipts, credit, debit and banking data details with permissions.
After cracking down on password-sharing, Netflix sees a daily increase of 100K sign-ups.
According to data from research firm Antenna, daily sign-ups for Netflix in the US have increased following the company’s recent crackdown on password-sharing, which came into effect on May 23. The news has led to a 2.3% rise in shares, which currently sit at $418.92. Previously, Netflix promoted password-sharing and estimated that over 100 million households had supplied their log-in details to people outside of their homes. However, in an effort to make money in a tough market, the company has reversed its stance and is now regulating password-sharing. Under the new rules, users in the US can add one member outside of their household for an additional fee of $8 per month. The move appears to have paid off, with nearly 100,000 daily sign-ups being recorded on both May 26 and May 27. In a bid to increase revenue, Netflix has extended its password-sharing restrictions to more than 100 other countries. The data source for Antenna’s research is third-party data collectors that track online purchase receipts, credit, debit, and banking details with permissions.