Netflix’s recent controversial decision to crack down on password sharing has yielded unexpected results, as daily sign-ups in the United States saw a significant surge following the implementation of the new policy on May 23. Data from research firm Antenna revealed that the news propelled Netflix’s shares to reach an impressive 52-week high of US$425.90 (AU$631.81), ultimately closing at US$420.02 (AU$623.08) on Friday, reflecting a 2.6% increase.
In a remarkable shift for a company that previously celebrated password sharing with the motto “Love is sharing a password,” Netflix made the bold move to regulate this practice. Faced with a saturated market and a challenging economic climate, the streaming giant sought innovative ways to boost its revenue. It estimated that over 100 million households had generously shared their login credentials with friends and family outside of their own homes.
Under the new rules, US users are now required to pay an additional $8 per month to add a member from outside their households. Surprisingly, this strategy seems to have paid off handsomely, as Antenna reported nearly 100,000 daily sign-ups on both May 26 and May 27.
It’s worth noting that Netflix’s password-sharing crackdown extends beyond the United States alone, as the company has implemented the policy in over 100 other countries, including Australia.
These recent developments mark a significant milestone for Netflix, with the streaming giant experiencing its four most successful days of user acquisition in the United States since the policy change was put into effect.
