Netflix is seeing a surge in subscriptions after the implementation of its crackdown on password sharing.
The streaming giant’s new policy, which restricts account sharing to within the same household, has significantly increased sign-ups from US customers.Â
Since notifying its members in late May about the change, Netflix has seen four of its largest days for customer registrations, with nearly 100,000 daily sign-ups on two of those days alone, according to data provider Antenna.
Read More: Netflix to crack down on password sharing in the US
Starting May 23, Netflix emailed its members, emphasizing that their accounts were intended for household use only.
As part of the new policy, members are given two options for users outside their households.
They can transfer the profile to the individual outside the household to begin their own paid membership, or the member can pay an additional $7.99 per month per person outside their household.
Since the introduction of the email campaign, daily sign-ups to Netflix have reached an average of 73,000, a 102 percent increase compared to the previous 60-day average.
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This growth surpasses the spike in sign-ups experienced during the initial pandemic lockdowns.
The pandemic initially led to a surge in subscriber numbers for streaming services like Netflix, but this growth dwindled in subsequent years.
Facing stagnant subscriber growth in 2022, Netflix, like other media companies, sought ways to boost revenue.Â
Alongside the password-sharing crackdown, the company introduced a more affordable ad-supported tier.
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Following its first subscriber loss in a decade last year, Netflix’s stock initially took a hit but has since rebounded due to the implementation of the password-sharing policy and the introduction of ad-supported streaming.
The stock reached a 52-week high on Friday, June 9, and has risen by over 40 percent year-to-date.
Netflix has revealed that more than 100 million households, accounting for approximately 43 percent of its global user base, currently share accounts, which impacts its ability to invest in new content.
The company began rolling out password-sharing guidelines in international markets earlier this year, with the crackdown delayed in the US until the second quarter after initially being planned for the first quarter.
