Netflix's crackdown on password sharing led to increase in sign-ups and revenue growth

Netflix’s recent crackdown on password sharing appears to have yielded positive results, according to data from analytics company Antenna. The streaming giant began cracking down on password sharing in the US on May 23, and since then, the company has seen a significant increase in sign-ups.

Antenna reported that Netflix saw 100,000 daily sign-ups on both May 26 and May 27, which is more than during the COVID lockdown periods. While there was an increase in cancellations, it was not as significant as the increase in sign-ups. Additionally, shares of Netflix went up by about 13% after the announcement of the crackdown.

According to Netflix, more than 100 million users were sharing accounts, and the company expected some negative reaction in the US. However, based on the results so far, there could be an acceleration in revenue growth.

The crackdown on password sharing is not new, as streaming services have long been trying to find ways to prevent users from sharing their login information with others. However, Netflix’s move to enforce its terms of service may have been more successful than previous attempts, as evidenced by the increase in sign-ups.

After all, it appears that Netflix’s move has been a success so far, and it remains to be seen whether other streaming services may follow suit and implement similar policies to combat password sharing. This could also extend to music, video, and gaming subscription services.