Netflix Sign-Ups Surge After Company Announces Password-Sharing Crackdown
Netflix may not have made people happy when it started cracking down on password sharing, but the change has reportedly made more people sign up. Deadline reports that sign-ups on the streamer have skyrocketed, per analytics firm Antenna. While Netflix has been warning subscribers about the password sharing and how it will only be limited to the household for the last few months, the streamer alerted users a couple of weeks ago. Netflix then saw almost 100,000 daily sign-ups on May 26 and May 27 after the crackdown was announced on May 23.
Daily sign-ups on Netflix reached 73,000, which is up more than 100 percent from the 60-day average it previously saw, and it also exceeded spikes in sign-ups during the initial COVID lockdown in March and April 2020. While the streamer saw plenty of sign-ups, it also saw many cancellations, which isn't so surprising. The ratio for sign-ups to cancels since May 23 favored mostly in sign-ups, as it was up 25.6 percent.
People were not happy when Netflix initially announced their password sharing days were over, as many friends and family share their accounts to make viewing easier and to spend less money. Though hearing that sign-ups went up substantially after the announcement makes sense, considering less people were then able to have a Netflix account and more inclined to sign up for one of their own.
Netflix will reportedly gradually roll out the password crackdown into other markets after initially starting in the States. With billions of dollars of revenue at stake, the crackdown has helped increase the streamer's stock, with shares up to 2.5 percent. It also helps that Netflix has not slowed down with its content, even if it has still been canceling shows left and right. The streamer has a lot to offer for June, and with the summer months continuing, bringing even more original content and fan-favorites, that will likely continue.
It's likely more sign-ups will continue on Netflix as more and more subscribers have deal with the password sharing crackdown. While it is a disappointment that it's happening, especially since so many other streamers offer password sharing between households and devices, as long as people keep signing up, it doesn't seem like it really matters. Really, the only downside is that Netflix will probably continuing raising its prices, giving people the option to once again cancel their subscription or pay even more money than usual.