Netflix’s new policy against sharing passwords, requiring an additional subscription for users not belonging to the same household, boosted subscriptions in the United States.
Netflix recently sent shockwaves with its new anti-password sharing policy. The streaming giant has indeed introduced a restriction prohibiting its users from sharing accounts with people who do not belong to the same household. This decision has already given a boost to the number of subscriptions in the United States.
Netflix implemented this new policy at the end of May, requiring users who do not live under the same roof as the primary account owner to subscribe to their own subscription or add an additional subscription. Each new user must pay 5.99 euros per month. However, it is still possible to share an account with other users without direct consequences. The platform has indeed assured that it does not foresee any blocking or termination of account for the moment.
The ratio of new signups to unsubscribes increased by 25.6%
According to a recent study by research firm Antenna, the number of new listings has jumped 102% in recent weeks. The data was compared to the average of registrations over the 60 days preceding the announcement of this new policy. With an influx of 73,000 new subscribers, the number of registrations exceeded that recorded during the first confinements linked to the Covid-19 pandemic. May 26 and 27 particularly stood out with nearly 100,000 new registrations.
However, it should be noted that this increase in the number of subscriptions is also accompanied by a significant increase in unsubscriptions. The ratio of new signups to unsubscribes has increased by 25.6% over the past few weeks.
NEW on the Antenna Blog: A first look at the impact of Netflix’s pw sharing crackdown. In the first 6 days since they implemented the new policy, Netflix has had the 4 single largest days of US user acquisition in the 4.5 yrs that Antenna has been measuring the streaming service. pic.twitter.com/rDYGxR43Qm
— Antenna (@AntennaData) June 9, 2023
If new subscriptions are currently in the lead, the situation could stabilize over a longer period. It is therefore still too early to determine how this new Netflix policy will influence the platform in the long term. Also, these numbers may vary by region. The next quarterly results will provide a clearer view of the impact of these changes.
For Netflix, the fight against password sharing seems like a bold gamble that has so far yielded mostly positive results. However, the SVoD platform will have to navigate carefully to avoid a wave of unsubscriptions which could cancel out the beneficial effects of this policy.
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