100,000 daily sign-ups: Netflix cashes in on password crackdown

Netflix’s move to crack down on password sharing has yielded unexpected results as daily sign-ups surge.

Photo Rafael Henrique via Getty Images

Netflix’s controversial move to crack down on password sharing has yielded unexpected results as daily sign-ups in the United States surged in the days following the implementation of the new policy on May 23, according to data from research firm Antenna.

The news propelled Netflix’s shares to reach a remarkable 52-week high of US$425.90 (AU$631.81), closing at US$420.02 (AU$623.08) on Friday, reflecting a 2.6 per cent increase.

In a surprising shift for a company that once celebrated the act of password sharing with the motto “Love is sharing a password,” Netflix made the decision to regulate the practice.

With a saturated market and a challenging economic climate, the streaming giant sought innovative ways to boost revenue.

It estimated that over 100 million households had generously shared their log-in credentials with friends and family outside of their homes.

Netflix sign-ups have surged. Picture: Rafael Henrique/ Getty Images

Under the new rules, US users are now required to pay an additional $8 per month to add a member outside of their households.

It appears that Netflix’s strategy has paid off handsomely, as Antenna reported almost 100,000 daily sign-ups on both May 26 and May 27.

Netflix’s password-sharing crackdown has not been limited to the United States alone. The company has extended its reach to more than 100 other countries including Australia.

In fact, Antenna, which sources data from trusted third-party collectors monitoring online purchase receipts, credit, debit, and banking information with permission, noted that this recent surge in sign-ups surpassed the levels observed during the initial COVID-19 lockdowns in March and April 2020.

These developments mark a significant milestone for Netflix, with its four most extensive days of user acquisition in the United States occurring since the policy change was implemented.

Originally published as 100,000 daily sign-ups: Netflix cashes in on password crackdown