Netflix’s decision to stop sharing passwords seems to have won in the US

Netflix’s new account sharing policy doesn’t seem to have the negative consequences many fear. In contrast, in the US, new users have recently signed up for the streaming service.

In the message: Since May 23, the number of Netflix subscribers in the US has grown significantly faster. On that date, the streaming service decided to crack down on password sharing in the US. Many feared that Netflix would lose customers as a result, but the opposite appears to be true.

What happened before:

• Netflix has been trying to do something about users sharing their passwords for years. Research shows that more than half of Netflix users share their passwords. For example, a streaming service is losing a lot of revenue, so it wants to do something about it.
• After testing several systems, Netflix decided which system to launch earlier this year. With this new policy, you can only use one Netflix subscription per family or with people you live under the same roof with. Anyone who shares his, her, or their password outside the home will soon receive an email. You will receive a warning that your login is being used by others. You can intervene yourself by switching people from your account. If you don’t, you’ll need to check your family, which means people outside your home will no longer have access.
• People who use Netflix with someone else’s password have several options. The first is simple: create an account yourself. Additionally, there will be a new option. For a small fee per month, you can add an additional account to your already illegal family. Its price varies from country to country. Such an additional account costs 3.99 euros in Belgium, but 7.99 dollars (7.44 euros) in the United States.
• In February, Netflix began testing the system Canada, New Zealand, Portugal and Spain. On May 23, it announced that It will be expanded to other parts of the world. For now, sharing passwords is still possible in Belgium. On the other hand, action is already being taken against this in the US.

What is the effect of this decision on Netflix?

• According to the data structure Antenna Netflix’s new policy has been a huge success. Since May 23, a significant number of new subscribers have been added in the US. On Friday 26 and Saturday 27 May, it added more than 100,000 new subscribers per day. This is the most days since Antenna began keeping such records four years ago. This is the highest since the beginning of the Corona lockdown. Many of these new subscribers may have been watching Netflix for free on someone else’s account for a while.
• As expected, not everyone was happy with Netflix’s decision. The number of subscription cancellations has also increased since May 23. However, these cancellations do not exceed many new customers.
• The success of this new policy of Netflix also has a positive effect on the stock market. The streaming service’s share price has risen 13 percent since May 23.

Check out our top 50 best series on Netflix here.