Netflix Gains 6 Million Subscribers After Password Sharing Crackdown

Netflix Gains 6 Million Subscribers After Password Sharing Crackdown

Earlier this year, Netflix initiated a crackdown on password sharing in the United States and other nations, and the results have proven to be successful, as per the company's recent statement. In the second quarter of 2023, Netflix saw an increase of 5.9 million new global subscribers, with over one million additions in the U.S. and Canada, as reported in their latest earnings report [PDF].

Given these outcomes, Netflix plans to extend paid sharing to "nearly all" other countries where the new policies have not yet been implemented. In May, Netflix discontinued multi-household password sharing in the United States, leading to a significant surge in new signups.

Netflix reported that in all regions where paid sharing was introduced, there has been an increase in revenue, and the number of new sign-ups has surpassed the number of cancelations. The company experienced a 2.7 percent year-over-year revenue growth. Looking ahead, Netflix anticipates even more accelerated revenue growth as it starts to fully reap the advantages of paid sharing and sees additional adoption of its ad-supported plan.

Until recently, Netflix permitted subscribers to share their accounts with individuals not residing in their immediate households. However, this sharing practice has now been disallowed. To ensure compliance, Netflix restricts access based on IP and other location-related data, requiring all users of a Netflix account to be located in the same place. In response to this change, Netflix introduced tools that facilitate those sharing accounts to sign up for their own individual accounts.

According to Netflix, over 100 million households were engaged in account sharing, which had a notable impact on the company's ability to invest in and enhance its services for paying members.

News Source: MacRumors.com

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