CNA – Daily United States (US) sign-ups for Netflix have jumped in the first few days after the streaming giant’s password-sharing crackdown came into effect on May 23, data from research firm Antenna showed.
The news sent shares of the company up 2.3 per cent to USD418.92 in early trading.
Looking for new ways to make money in a saturating market and a tough economy, Netflix moved to regulate the sharing of account passwords with friends and family – a drastic turnaround for a company that had once tweeted “Love is sharing a password”.
Netflix had estimated that more than 100 million households had supplied their log-in credentials to people outside their homes. Under the new rules, US users can add a member outside of their homes for an additional fee of USD8 per month.
Its calculations seem to have paid off as the company recorded nearly 100,000 daily sign-ups on both May 26 and 27, according to Antenna. Netflix, which has expanded its crackdown to more than 100 other countries, did not immediately respond to a Reuters request for comment.
The streaming video pioneer saw its four largest days of US user acquisition after the change came into effect in the four-and-a-half years that Antenna has been covering the company.
The recent spike also exceeded levels seen during the initial US COVID-19 lockdowns in March and April 2020, according to Antenna, which sources data from third-party data collectors that track online purchase receipts, credit, debit and banking data details with permissions.
