Netflix sees spike in subscription after crackdown on password-sharing

The crackdown on password sharing by Netflix looks to be thriving in the US, which may not come as a surprise. Netflix witnessed a significant increase in subscribers in the four days following its May 23notification to consumers regarding its paid sharing rules, claims data analytics firm Antenna as reported byThe Wall Street Journal.

Antenna reports that the streamer also attracted 100,000 customers on both May 26 and May 27. While average daily signups increased to 73,000 over this span, signifying a 102 percent growth over Netflix's prior 60-day average. Antenna estimates that number of customers to be more than what Netflix gained when the covid-related lockdowns took place in March and April 2020.

In accordance with Netflix's new password-sharing rules, users must pay an additional $7.99 per month to share their account with up to two individuals who do not reside in their home. Antenna reports that even though Netflix had cautioned investors about a "cancel reaction" that may happen in response to the shift, there were still more signups than cancellations during the time that it observed.

Netflix introduced paid sharing in a number of non-US nations in February, including Canada, New Zealand, Portugal, and Spain. The firm stated on its most recent earnings conference that as a result of the crackdown, the number of subscribers in Canada is "now growing faster than in the US."

It's still too soon to know how much of an impact Netflix's crackdown on password-sharing has had in the US, but we'll probably learn more about it when the company releases its earnings results next month. We're already seeing a range of responses to Netflix's crackdown here at The Verge. While one of my coworkers paid extra to add family members to their account, my boyfriend cancelled the membership we share with his family in another location.

How much extra does Netflix password sharing cost?

Late last month, Netflix added the extra fee for password sharing; as a result, sharing your account with someone who is not a member of your household now costs an additional $8 on top of your monthly fee.

You may add two extra users to your account if you subscribe to Netflix's Premium tier for $20 per month. You are only allowed to add one additional member if you are on the regular plan for $15.50. Additional members cannot be added to the $10 basic plan, and you cannot do the same if you subscribe to Netflix's new $7/month ad-supported option, which currently has 5 million customers.

Some episodes and films are missing from Netflix with advertisements, but vice versa.

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