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Netflix password sharing crackdown is working
The popular streaming service has gained 5.9 million subscribers after clamping down on account sharing
When Netflix announced it would be clamping down on password sharing, many of us thought it would have a negative effect. Not only was this against the approach of other streaming services, but it seemed – for a better word – needlessly greedy.
However, it appears the Netflix password sharing crackdown has paid off. In a Q2 2023 earning interview with investors, Netflix revealed it had gained 5.9 million new subscribers in Q2 and only suffered a limited number of cancelations as a result of the new policy.
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“The cancel reaction was low and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,” Netflix said in a letter to investors.
➡️ The Shortcut Skinny: Netflix password sharing
👏 It turns out Netflix’s password sharing clampdown has worked
📈 The company has attracted almost six million new subscribers
💰 Despite an initial backlash, the move has helped the company’s bottom line
🙌 Other streamers still let you share accounts
Netflix has clamped down on password sharing in over 100 countries, and will soon bring the policy to countries like Croatia and India, where people can still share accounts.
Netflix initially delayed its password-sharing crackdown in the US as it first tested the new approach in other countries. After positive results, the streamer implemented the policy in all the major markets, and despite the backlash, it’s helped the company rake in money that was previously off the table. That’s a good thing as Netflix lost
Netflix also launched Netflix Basic with Ads, a new tier that costs $6.99 per month and includes 85% to 95% of the content Premium tier subscribers can access. You’ll be subjected to four to five minutes of ads per hour, and your streaming quality is capped at 720p.
Even though other streaming services allow password sharing, like Prime Video, we’ve seen subscription fees rise. Peacock is the latest service to announce a price hike, and Apple TV+ and Disney+ also raised their monthly subscription costs last year.