Reports indicate that, unfortunately for consumers, Netflix’s long-anticipated password-sharing crackdown is working. According to data from research company Antenna, which we saw via Variety, sign-ups for new Netflix accounts are at a four-year high. And this comes directly as a consequence of the company’s efforts to curb password sharing. The increase in subscriptions has an even higher spike than the subscription increase Netflix saw during the early years of the COVID-19 pandemic. We guess many people sharing accounts still want to access Netflix.
According to Antenna, since Netflix began its US password-sharing crackdown in earnest on May 23, subscriptions have skyrocketed. Netflix’s average daily sign-ups increased 102% (over the last 60-day days) from May 25 to May 28. And average daily sign-ups hit 73,000. That is indeed astronomical. Antenna reveals that Netflix hasn’t seen numbers this high since January 2019.
Of course, cancellations also increased as a result of Netflix’s password-sharing crackdown. However, the rate of cancellations was less than the rate of new subscriptions, leaving Netflix the winner. Although, there is a natural cap to this increase as well. At some point, all the Netflix sign-ups that will happen as a result of the password-sharing crackdown will happen. And then growth may cease. However, Netflix previously estimated that 30 million households in the US and Canada share passwords. Perhaps some households even share with multiple people. So, there are many new subscriptions to come.
In the event you are sharing passwords, Netflix will let you know you had better pay up or expect not to be able to use the account any longer. Subscribers who have been sharing Netflix accounts can either transfer their accounts to a whole new Netflix subscription or add an extra member for $7.99/month. We’re just crossing our fingers that other streamers aren’t inspired by Netflix to have their own password-sharing crackdowns.