Netflix subscriptions jump after password sharing crackdown

Netflix subscriptions have registered a spike in daily sign-ups after the streaming giant launched a crackdown on password sharing on May 23, data from research firm Antenna has shown.

The news sent shares of the company up 2.3 per cent to US$418.92 in early trading.

Looking for new ways to make money in a saturatwd market and a tough economy, Netflix moved to regulate the sharing of account passwords with friends and family- a drastic turnaround for a company that had once tweeted “Love is sharing a password”.

Netflix added 100,000 new accounts on both May 26 and May 27, shortly after the crackdown went into effect, Antenna’s data found. In the following days, Netflix has seen a more than 100% increase in sign-ups from the prior 60-day average.

“These exceed the spikes in sign-ups Antenna observed during the initial US Covid-19 lockdowns in March and April 2020,” the firm said in a report. It also noted that “cancels also increased during this period, but not as much as sign-ups.”

Netflix (NFLX) shares popped on the news, rising nearly 2% in early trading Friday. Shares have climbed over 27%, to about $415, over the last month.
Last month, the service alerted US subscribers that if they share passwords with people outside of their household, they would have to add an extra member to their account for an additional $7.99 monthly fee or sign up for a new account. It also plans to block users with unauthorized passwords.
The streaming video pioneer saw its four largest days of U.S. user acquisition after the change came into effect in the 4-1/2 years that Antenna has been covering the company.