Netflix saw a wave of new subscribers following the streaming giant’s crackdown on password sharing.
Netflix’s streaming service saw its biggest ever four-day increase in subscriptions following the company’s recent decision to disable its password-sharing feature in the U.S. and more than 100 countries and territories, according to new data from Antenna, a streaming analytics company that has tracked subscriber growth since 2019, The Wall Street Journal reports.
While features like profiles and multiple streams have been hugely popular on the platform, Netflix says these features also created confusion about when and how to appropriately share accounts.
Netflix’s decision to crack down on password sharing is the latest move by the company to boost revenue, appeal to budget-conscious customers, and restore confidence in investors following back-to-back quarterly subscriber losses in 2022 for the first time in the streaming platform’s history.
“Today, over 100 million households are sharing accounts — impacting our ability to invest in great new TV and films,” Netflix said in its initial February 8 news announcement.
“A Netflix account is intended for one household, and members can choose from a range of plans with different features. As always, we’ll refine these new features based on member feedback so that we continue to improve Netflix in the years ahead,” the company said.
Under the new password-sharing policy, Netflix users will no longer be able to share their passwords with friends or family outside their own households.
Instead, Netflix’s new policy will enable paid users to set a primary household location, manage account access and devices, transfer profiles to a new account, stream while traveling, and purchase an extra member account.
Netflix members with Standard or Premium plans can add an extra member account for up to two people they don’t live with — each with a profile, personalized recommendations, login, and password — for an additional $7.99, Netflix says.
Shares of Netflix (NASDAQ: NFLX) were up more than 15% on the day following the report from Antenna. Netflix’s share price reached a 52-week low of 164.28 in June, correlating with peak inflation in 2022 and the bottom of many stocks. Netflix’s share price was trading around $425 at mid-day on Friday.
Netflix’s ban on password sharing has already rolled out in the U.S. and other countries, including Canada, Spain, Portugal, and New Zealand.