Streaming giant Netflix has seen a surge in new subscriptions in the days following its crackdown on password sharing, according to data from streaming analytics firm Antenna. The company added more new subscriptions between May 25 and May 28 than in any other four-day period since Antenna began compiling information in 2019. Over that period, average daily signups peaked at 73,000, and from May 26 to May 27, Netflix saw 100,000 new daily subscribers join the streaming service.
However, the company also announced that over 100 million people are accessing Netflix content through borrowed passwords. Netflix's solution to this issue is to force users who share an account outside the same home to pay an additional $7.99 a month to watch, while limiting the number of additional members that paying customers can add to their account. The monthly fee for sharing passwords is $2 less a month than a basic subscription but $1 more than the ad-supported plan.
According to experts, other streaming services are expected to follow suit in cracking down on password sharing. While it remains to be seen whether this will lead to a similar uptick in new subscribers for those services, it is clear that password sharing is becoming an increasingly contentious issue in the streaming industry.
Despite the success of the subscription surge, Netflix shareholders recently rejected the executive pay packages proposed by the company. It remains to be seen how this decision will affect the company's future plans, including its efforts to combat password sharing.