- Netflix recently began its password-sharing crackdown in the US.
- It has since observed four of its highest single-day subscription numbers in the US.
- There was also an increase in cancellations among Netflix US subscribers.
Netflix’s recent efforts to crack down on “password sharing” is likely paying off, as the platform is experiencing a huge surge in new subscribers. After notifying subscribers about the updated password-sharing policy in late May, the streaming platform has observed four of its highest single-day subscription numbers in the US.
Rise in Netflix subscriptions amid password-sharing crackdown
According to a report by data provider Antenna, Netflix saw a surge in average daily sign-ups, reaching 73,000 from May 25th to May 28th. This represents a 102 percent growth compared to the average daily subscriptions over the last two months (60 days). Surprisingly, these figures surpass the spikes in subscriber sign-ups observed during the initial lockdowns over the Covid-19 pandemic in the month of March and April 2020.
During the same period, there was also an increase in cancellations among Netflix US subscribers, which the company reportedly expected. However, as per the report, these numbers remained lower than the number of new subscriptions. The ratio of sign-ups to cancellations since May 23rd saw a significant increase of 25.6 percent compared to the previous 60-day period.
Netflix password-sharing crackdown: How does it work?
The streaming platform employs various methods to determine the user’s location, including analyzing logged IP addresses, device IDs, and account activity. Every Netflix account is assigned a primary location.
If the user is using a Netflix account registered with the home location, the device is expected to connect from home at least once a month to continue accessing Netflix, even if they move or travel. If the user exceeds this timeframe, additional charges will apply.
When using a friend’s Netflix account, the users may be prompted to create their own account, update their home location, or indicate that they are travelling.
Netflix password-sharing crackdown in India
As of now, Netflix has not yet implemented the initiative of cracking down on password sharing in the country. But, likely, this change will soon be introduced in the near future. The platform has already said that they are planning to roll out this update gradually to several markets. It should be noted that India holds significant importance as one of the key markets for the platform, and several users in the country are known to share accounts with friends, family and others.
