Netflix Subscriptions Rise amid Password Sharing Crackdown in the US

The Netflix crackdown on password sharing has finally been implemented in the United States, and it looks like the streaming giant is on the right path all along in its quest to boost its subscriber base.

On the topic of being restricted to share their streaming account outside of their home’s IP address, we have seen a lot of people voice out this particular concern on social media, and should Netflix implement this password-sharing crackdown, their unanimous response would be to ultimately unsubscribe from the streaming service.

However, the outcome turned out quite the opposite. Since informing its members in late May of its new password sharing rules, Netflix enjoyed a huge number of signups for four days in the US, according to data provider Antenna. During that time, Netflix has seen almost 100,000 daily signups on two of those days.

On May 23, Netflix sent out emails to its members that there will be changes in its sharing guidelines, putting emphasis on the rule that an account can only be shared within the same household.

“Your Netflix account is for you and the people you live with — your household,” said the streaming company in an email notification sent to members.

For those using their passwords outside of their household, the new policy provides members two options:

  • Transfer the profile to the person outside of their household so they can sign up and pay for their very own account
  • The member has to pay an extra $7.99 a month for each person outside of their household

After the email about password sharing rolled out, the average daily signups on Netflix have soared to 73,000 – a 102% rise from the previous 60-day average, which notably exceeded the spike in signups that occurred during the lockdowns brought about by the pandemic, say Antenna.