Netflix’s move to crack down on password sharing has sent shockwaves through the streaming community, and it’s paying off in more ways than one.
The American streaming giant recently implemented its plan to crack down on password sharing on May 23, but the controversial move has already yielded unexpected results. Research firm Antenna reports that daily sign-ups in the U.S. surged in the days following the crack down.
The news comes on the heels of Netflix’s shares reaching a remarkable 52-week high of US$425.90 (AU$631.81) on Friday, closing at US$420.02 (AU$623.08). This marks a 2.6% increase, which can likely be attributed to its newfound success.
The crack down itself is nothing new, as streaming services throughout the world have been dealing with password sharers in recent months. Netflix’s crackdown involves blocking access to any account shared with one or more people outside of the immediate family. This shows how serious Netflix is in stopping the rampant practice of password sharing and ensures that the streaming platform will remain profitable in the long run.
In order to boost revenue despite the saturated market and difficult economic climate, the streaming giant sought out innovative solutions. It was estimated that greater than 100 million households had shared their log-in credentials with people outside of their own home generously.
The strategy of Netflix to implement the new rules that require US users to pay an additional $8 a month to add a member outside of their households seem to have been very successful, as Antenna reported almost 100,000 daily sign-ups on both May 26 and May 27.
Netflix’s password-sharing blocking is not exclusive to the U.S.A.; it has stretched out to more than a hundred different nations worldwide, including Australia.
