Netflix’s password-sharing policy has had no effect on its membership base.
On May 23, the streaming service said that it will begin measures to prevent password sharing.
According to subscription research agency Antenna, Netflix has had the four greatest days of U.S. customer acquisition in the 412 years Antenna has been tracking those data.
According to Antenna, “based on the most recent data available, Netflix saw nearly 100,000 daily sign-ups on both May 26 and May 27.”
“During that time period, average daily sign-ups to Netflix reached 73k, a +102% increase over the previous 60-day average.” These outnumber the sign-up surges recorded by Antenna during the early U.S. COVID-19 lockdowns in March and April 2020.”
This is not to imply that individuals were not terminating their subscriptions. These figures increased as well, although not as much as sign-ups, according to Antenna. Netflix’s sign-up-to-cancellation ratio has increased by +25.6% since the crackdown was announced, compared to the prior 60-day period.
Netflix, as I reported last week, has been looking for a way to balance its “long history of customer centricity and its need as a business to get paid.”
Netflix has struggled with password sharing for more than a decade, but it used to just expand its way past it and other issues. The corporation is now reconsidering its position.
During an April earnings call, Co-CEO Greg Peters stated that users who had previously been account “borrowers” and had seen a significant amount of Netflix material were likely to switch to the company’s new paid account-sharing scheme.
