Netflix seems to be making out great since cracking down on password-sharing between users in the United States. The great exodus of customers from the streaming giant has failed. Things actually went the opposite way — and very much so.
In a report from Antenna, it appears that the company actually experienced an enormous spike in signups when it started to crack down on those trying to share a password with others. All of those people, apparently, turned around and signed right up for Netflix.
Since alerting subscribers in the United States that it would begin to curb password sharing on May 23, 2023, Netflix has had the four single largest days of U.S. user acquisition in the four and a half years that Antenna has been measuring the streaming service. Based on the most current data available, Netflix saw nearly 100,000 daily Sign-ups on both May 26 and May 27.
While signups saw a spike, so did those canceling their accounts. Apparently, some people made good on their promise to leave Netflix in protest of the new policy. However, those that did pale in comparison to those who signed up for the streaming service.
Average daily Sign-ups to Netflix reached 73k during that period, a +102% increase from the prior 60-day average. These exceed the spikes in Sign-ups Antenna observed during the initial U.S. Covid-19 lockdowns in March and April 2020. Cancels also increased during this period, but not as much as Sign-ups. The ratio of Sign-ups to Cancels since May 23rd is up +25.6% compared to the previous 60-day period.
While Netflix seems to have gotten its desired effect — a bunch of people ended up getting kicked off of a shared account and had to sign up for one of their own — BGR’s Chris Smith laid out why this is a rash decision and how you can actually buy some time with everyone still using your account. We’re in a new era, but Netflix probably hasn’t figured you out just yet.