Netflix Shared Password Crackdown: Subscribers Surge!

netflix elimina contrasenas compartidas.jpg
netflix elimina contrasenas compartidas.jpg

Password Sharing Crackdowns Generate Positive Results for Netflix.

In May, Netflix decided to crack down on password sharing in the United States.

According to subscriber data shared today by analytics company Antenna (via The Wall Street Journal), the decision has been beneficial for the company.

Significant increase in daily subscriptions

After ending password sharing across multiple households in the United States, Netflix experienced a 102% increase in average daily subscriptions, reaching 73,000 per day.

Close to 100,000 daily subscriptions were even registered on both May 26 and 27, surpassing the numbers obtained during lockdown periods due to the COVID-19 pandemic.

Balance between cancellations and new subscriptions after the policy change.

While there was an increase in subscription cancellations after the new policy was implemented, the number of people who canceled their membership did not exceed the number of new subscriptions Netflix received.

According to Antenna “The ratio of subscriptions to cancellations increased 25.6% since May 23 compared to the previous 60-day period.”

The need to combat password sharing and its impact on Netflix.

Netflix argues that more than 100 million households shared accounts, affecting its ability to invest and improve service for paying members.

The company expected some reaction from cancellations in the United States, but based on previous experiences in other countries.

Also, he anticipated accelerated growth in revenue and membership base as a result of the policy change.

Restrictions and options to prevent password sharing on Netflix

Netflix no longer allows subscribers to share passwords with people who don’t live in the same place.

Users must set a primary location, and the IP address and other information is used to restrict access to multiple homes.

However, an option has been introduced to allow additional members to use an account outside of the primary location for an additional fee of $7.99 per month.

This additional service provides individual profiles, personalized recommendations, and access with login and password.

Netflix subscription plans and prices

Netflix prices vary depending on plans and features. The basic plan, which includes ads and allows streaming on a single device in 720p HD quality, costs $6.99 per month.

The standard plan, which offers 1080p quality streaming and access on two simultaneous devices, is priced at $15.49 per month.

Lastly, the 4K Netflix plan, with the ability to watch on four devices at once, is available for $19.99 per month.

The importance of location in the new Netflix policy

It’s important to note that while the Standard and Premium plans allow viewing on two or four devices simultaneously, all devices must be in the same location in the home per Netflix’s new policy.

This measure seeks to further restrict the sharing of passwords and guarantee a quality service for paid members.

We can say that the crackdown on password sharing on Netflix has had a positive effect on subscriber growth in the United States.

Although there have been cancellations, the increase in new subscriptions has outpaced those cancellations.

Netflix hopes this move will not only protect its revenue, but also improve the experience for paying members, thereby fueling the platform’s continued growth.