According to early figures, the measure against password sharing could have a productive impact on Netflix’s growth, at least that’s revealed from the survey examining its US subscriber base, published by the analysis firm Antenna, which has been benchmarking the streaming service’s numbers for more than four quarters. Years. According to Antenna, the jump in the number of registrations in the first days after the restriction was introduced was higher than during the pandemic lockdowns in March and April 2020.
Since May 23, subscribers in the US have to pay an additional fee of eight dollars if they want to give access to their subscription to someone outside their household. In the six days after the restriction went into effect, Netflix averaged 73,000 subscribers, up 102% from the previous 60-day average.
On May 26 and May 27, 100,000 new registrations per day were also reached. Although the number of people who canceled their subscriptions also increased as a sign of protest, their number did not match the number of new arrivals: the registration and cancellation rate increased by 25.6% compared to the previous 60-day period.
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A recent survey by Jefferies analysts found that 62% of password providers would rather give up on Netflix than sign up for their own accounts, but consumers tend to overestimate their willingness to give up services in surveys.
Netflix previously estimated that more than 100 million households share their accounts with “strangers,” 30 million of whom live in the US and Canada, so it’s an important camp, but it’s certainly a matter of time to see what trends emerge as a result. of change after the initial impetus.
The streaming service recently introduced a cheaper ad-supported tier in the US, which, according to surveys so far, is also having a beneficial effect on revenue: in the first months of the year, nearly 1 million US subscribers watched Netflix content off. Through commercials in exchange for the broadcast giant offering them entertainment at the best prices.
