A few weeks ago, Netflix started introducing additional fees for sharing an account. The users are not very enthusiastic about this decision. However, it could pay off for the streaming service.
At least that’s what the first figures from the USA show. There, the additional fees, which amount to $7.99 per month, were introduced at the end of May. Since then, there have been around 73,000 new registrations per day on average. Compared to the 60-day period before the additional fees were introduced, this is an increase of a whopping 102 percent.
In the first two days after the introduction alone, almost 100,000 new paying customers were registered. Even at the beginning of the corona measures, there was not such strong growth on the platform. So is Netflix’s plan working?
As we note in our analysis, Netflix cancels were also up between 5/23-5/28, but not as much as sign-ups. Ratio of sign-ups to cancels since 5/23 is up +25.6% vs the previous 60-day period. Full post here: https://t.co/2CNU67kQST
— Antenna (@AntennaData) June 9, 2023
In order to judge that, you also have to look at the departures. Quite a few users had announced in advance that they wanted to terminate their account if the measures were really enforced. And indeed, an increase in layoffs was also observed.
As the market research institute Antenna reports, the number of cancellations is significantly lower than the number of new registrations. The ratio of registrations to cancellations is said to have increased by a little more than 25 percent since May 23. We can be curious how the situation will develop in the coming weeks and months. It is possible that the trend will reverse over a longer period of time.