Netflix Sign-Ups Jump Amid Password Sharing Crackdown, Report Says

Netflix sign-ups have surged recently as the company prepares to crack down on password sharing, analytics firm Antenna said today in a first look at the impact of the streamer’s new policy.

The company formally alerted U.S. subscribers on May 23 via email that it would begin to curb password sharing, which was followed by the four single largest days of user acquisition in the four and a half years Antenna has measured the streaming service, the research firm said. Based on the most current data available, it calculated Netflix saw nearly 100k daily sign-ups on both May 26 and May 27.

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Antenna said its purchase data covers all Netflix sign-ups except for those via MVPD + Telco distribution.

Antenna said average daily sign-ups to Netflix reached 73k during that period, up more than 100% from the prior 60-day average, and exceeding spikes in sign-ups during Covid-19 lockdowns in March and April of 2020.

Cancellations also increased during this period — but not as much as sign-ups. The ratio of sign-ups to cancels since May 23, Antenna said, is up +25.6% compared to the previous 60-day period.

In its notification email to subscribers, Netflix made clear its account “is for you and the people you live with — your household.”

Subscribers to the two highest subscription tiers can buy additional users for $7.99 a month on an ad-free plan. The Standard tier, which costs $15.49, entitles subscribers to buy one additional user, while the $19.99 Premium tier comes with two additional subscriber add-ons. The $6.99 ad-supported plan does not come with the option to add paying subscribers.

The move, which Netflix will be rolling out across its markets, was announced last year during a period of slowing subscriber growth. Billions of dollars of revenue are at stake here and the crackdown has helped buoy Netflix stock, which has been a standout in the media space. Shares are up 2.5% today.

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