Password crackdown is working: Netflix signups crossed the 100k daily mark for the first time in the US

Netflix signups in the United States have, for the first time, crossed the 100k daily mark recently. The rise is attributed to the company’s policy on password sharing in the United States that went into effect last month.

According to an analysis by Antenna, an analysis company that specializes on subscription-based services, daily sign ups on Netflix crossed the 100k mark on May 26 and 27.  Sign-ups in the period since May 23, 2023, the day the password sharing policy came into effect, have reached 73k daily, which is an increase by 102% over the prior 60-day average.

Antenna confirms that cancellations have also gone up, but not as much as new sign ups. According to the company’s analysis, cancellations have increased by 25.6% since May 23 when compared to the prior 60-day average.

source: Antenna

Antenna has been monitoring the streaming service for the past four and a half years according to the report, and it recorded the “four single largest days of U.S. user acquisition since the crackdown on passwords began. These days flew by the increase in subscriptions during the initial COVID lockdowns.

So far, Netflix’s crackdown on password sharing has been a mixed bag for the company.  News made the round at the end of April that Netflix lost more than a 1 million users in Spain after it launched its new password sharing policy in the country. Subscriptions did increase in Canada, after the password sharing policy was introduced.

Netflix revealed that it is expecting subscriber country to go down initially, but that it expects sign ups to pick up shortly thereafter.

Netflix introduced a new advertisement driven subscription plan, which it calls Standard with ads recently. The company announced in May that the ad-supported plan crossed the 5 million users mark, and that it is more lucrative to Netflix financially than the cheapest plan without ads.

It is too early to draw a conclusion on the success or failure of Netflix’s strategy. What is clear, however, is that other streaming providers are in the starting blocks to introduce stricter password sharing policies if the introduced changes lead to increased subscription numbers.

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