The Netflix login page displayed on a laptop screen and the Netflix logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on January 2, 2023.
Jakub Porzycki | Nurphoto | Getty Images
Since notifying its members in late May of its new password-sharing policy, Netflix has had the four biggest days of US customer sign-ups since data provider Antenna began tracking the service. At the time, Netflix recorded nearly 100,000 daily sign-ups in two days, according to message from Antenna.
Netflix started on May 23rd sending emails to members that they are changing the sharing rules, specifically that accounts are to be shared within one household only.
“Your Netflix account is for you and the people you live with — your household,” the company said in an email that has since been sent to members.
Under the new policy, members have two options for people who use their passwords outside of their household. Either transfer the profile to someone outside of your household so that person can start a new self-pay membership, or the member will pay an extra fee of $7.99 per month per person outside of their household.
Since the email distribution began, average daily signups on Netflix have reached 73,000, a 102% increase from the previous 60-day average, surpassing the spike in signups during the initial pandemic lockdowns, according to Antenna.
Streaming services such as Netflix saw a large increase in subscribers in the early days of the pandemic when consumers were at home during the lockdown. However, this growth in subscribers stopped in the following years.
In 2022, Netflix began to see subscriber growth stagnateand, like other media companies, began to look for ways to increase revenue. In addition to cracking down on password sharing, Netflix also introduced a cheaper ad-supported tier.
While Netflix’s stock took a hit after it reported its first subscriber loss in a decade last year, it has since recovered thanks to the introduction of guidelines for password sharing and ad-supported streaming. Its shares hit a 52-week high on Friday and are up more than 40% year-to-date.
The company said more than 100 million households share accounts — about 43% of its global user base — which affects its ability to invest in new content.
Netflix began implementing password-sharing guidelines in international markets earlier this year. It should have delayed its crackdown on password sharing in the US from Q1 to Q2.