Netflix saw a huge spike in subscriptions in the days after it started cracking down on passwordNetflix experienced a surge in subscriptions after it began cracking down on password sharing. The company saw four of its best days for US acquisition ever, with almost 100,000 daily sign-ups on May 26 and May 27, just days after it started to curb password sharing. This resulted in a 102% increase in new daily sign-ups on average compared to the prior 60-day average. Although cancellations also increased, they were outweighed by new subscriptions, resulting in an increased ratio of sign-ups to cancels.
Netflix began its crackdown on password sharing on May 23 by sending emails to members who were known to be sharing accounts outside their household. Under the new rules, anyone sharing their account log-in with family or friends who don’t live at the same address must pay an extra $7.99 a month for each additional person. Despite some angry users threatening to switch to other streaming platforms like Disney Plus or Max, Netflix executives can breathe a sigh of relief with the surge in new subscription numbers.