Netflix launched its crackdown on password sharing in the US last month—and now it looks like the move has been successful for the company in terms of increasing active subscribers.
According to Antenna via Engadget, Netflix has seen an increase in account sign-ups after the company restricted the ability to log in by sharing passwords in the US and a few other regions.
The analytics firm said that Netflix has had “the four single largest days of U.S. user acquisition” during the four and a half years that the firm has been tracking the streaming service. “Netflix saw nearly 1,00,000 daily sign-ups on both May 26 and May 27,” the firm said.
Antenna notes that while subscriptions did rise, the number of cancellations also went up—but not enough to outpace the number of new sign-ups. It is likely that, due to password sharing restrictions, groups who previously shared an account are now buying individual, personal subscriptions to Netflix.
It must be noted that in the US, users not from the ‘primary household’ need to shell out an additional $8 per month. However, the basic subscription standalone costs $9.99. So, it could be possible that more users are just buying new subscriptions, without having to share an account, for $2 more.