Netflix’s measures against the disclosure of passwords are showing success. picture alliance / NurPhoto | Jonathan Raa
Netflix’s crackdown on password sharing has been a huge success.
New data from Antenna shows a sharp increase in new subscribers in May, June and July.
The new Netflix advertising offer also seems to be gaining ground.
This is a machine translation of an article by our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
This might be uncomfortable news, but there are signs that Netflix’s crackdown on password sharing has been a resounding success. On May 23, Netflix began charging US subscribers $8 to add another user to their account if that person doesn’t live in the account owner’s household.
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In my case, that meant I had to pay more (about $7.39) per month to keep my mother, who lives across the country, from being kicked out of my account. I’m far from the only one, according to new data from Antenna, a company that measures Netflix subscriptions using opt-in panels that track purchase and transaction data.
According to Antenna, in the first six days after the lockdown went into effect, Netflix saw “the four biggest daily gains in US users” in the four and a half years that Antenna has tracked the data. And new data the company released on Wednesday shows the momentum is continuing. Here is a chart of Antennashowing the surge in Netflix signups in the US:
Registrations with the streaming provider Netflix have risen sharply in recent months. Antenna
In this chart, you can see the big surge in June (and late May) in the US that helped Netflix achieve a monster quarter of 5.9 million new subscriptions worldwide. Antenna had previously stated that while the measures have increased cancellations, the number of new subscribers has increased at a far greater rate.
This trend continued in July, albeit easing somewhat, as might be expected after the initial surge when the sanctions were introduced. “Netflix recorded 2.6 million in July 2023 [Brutto-Neuzugänge], which is elevated compared to normal overall, but represents a -25.7 percent decrease from the record-breaking June 2023,” Antenna wrote. “For the second month in a row, Netflix led the category with almost 1 out of 5 Premium[Abonnement-Video-on-Demand-Brutto-Neuzugängen] an.“
Over time, how much benefit can Netflix derive from the crackdown? JPMorgan analyst Doug Anmuth previously estimated that by the end of 2025, 33 million password-sharing households worldwide would convert to new paying subscribers, Business Insider’s Matthew Fox reported. In his analysis, Anmuth assumed an approximate split between new subscribers and additional users added to existing accounts.
Other streaming providers are obviously taking note of Netflix’s success. Disney CEO Bob Iger said this month that he is planning his own crackdown on password sharing by 2024. In Antenna’s new study, the company also found that new subscribers are excited about Netflix’s cheaper ad-supported offering, which costs $7 a month.
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“Around 23 percent of Netflix subscribers have signed up for the ad-supported plan, up four percentage points from June 2023 and the highest proportion of new subscribers since the plan launched in November,” writes Antenna. It seems like Netflix’s two biggest changes of late, its advertising campaign and restricting password sharing, are paying off in large measure for the streaming service.
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