Crackdown on password sharing helped Netflix keep signups high, defy speculations that conveyed otherwise 

According to the statistics from research company Antenna, Netflix signups in the United States are still at a high level despite a decline from June’s record high following the video streaming pioneer’s implementation of a crackdown on shared passwords around May. 

🛑OTT and Password Sharing 🛑

Why is it changing? Because #Netflix is growing in users

Netflix achieved 2.6M net adds in Jul23

🔥Plan with advertising: +20% of the mix 🔥

Let the #streamingwar continue…#ott #disney #spotify #dazn #ParamountPlus pic.twitter.com/XDrQauOw0V

— Innovaption (@Innovaption) August 23, 2023

What could have been the dilemma  

Since customers now have various alternatives, like Warner Bros’s Max, Amazon’s Prime Video, and Walt Disney’s streaming service, it has become difficult to both get new members and keep existing ones. 

Wall Street mentioned worries about how password sharing would stall subscriber development. The Netflix restrictions did succeed in reviving user ads. 

After more than doubling in June, Antenna reported that the video streaming service’s gross customer additions dropped by 25.7% in July compared to the previous month. But compared to the usual, its 2.6 million gross additions in July were generally higher. 

Business is booming  

Following the launch of the less expensive, ad-supported membership tier last autumn, the new password system was implemented, and the two together gave the service a powerful boost. By gaining 5.9 million customers in the second quarter, which ended on June 30, the business said it quadrupled estimates and now has 238.3 million users globally. 

Antenna draws its subscriber numbers from bill-scraped data, credit, debit, and banking information, as well as online purchase receipts. It then takes numerous demographic and behavioral characteristics into account. Free trials are not included in the number of customers. 

Last year, Netflix said that it would restrict account sharing and that it was experimenting with different strategies in several areas.