Netflix has experienced a significant surge in daily sign-ups following its recent crackdown on password sharing. Market research firm Antenna reported that since notifying US subscribers about its intention to curb password sharing on May 23, Netflix witnessed its four largest days of user acquisition.
The data from Antenna revealed that Netflix gained nearly 100,000 daily sign-ups on both May 26 and May 27. The average daily sign-ups during this period reached 73,000, marking a 102% increase compared to the previous 60-day average.
While the crackdown on password sharing resulted in an uptick in new subscriptions, Netflix also observed a rise in cancellations. However, the report mentioned that the ratio of sign-ups to cancellations since May 23 increased by 25.6% compared to the previous 60-day period.
Netflix's crackdown on password sharing began last month, requiring each additional member using the service outside the main household to pay an extra $7.99 per month. The streaming giant clarified that an account is intended for use by one household, with all members being able to enjoy Netflix across various devices and locations through features like Transfer Profile and Manage Access and Devices.
Reportedly, In the US, subscribers who opt for the Netflix Premium package with 4K streaming can add up to two extra members, each incurring an additional cost of $7.99. In the UK, Netflix charges an extra £4.99 per month for each additional member. However, the Basic or Standard plans, which cost $9.99 and $6.99 per month respectively, currently do not provide the option to add extra members
Before the US crackdown, Netflix conducted a paid password-sharing experiment in Canada, New Zealand, Portugal, and Spain earlier this year.
Inputs from IANS