Netflix has been cautiously planning its password crackdown for a long time. And we have been thinking since then that this would cost Netflix its audience. The crackdown has started in the US, and it seems like everything is happening opposite of what we were expecting. Instead, people are subscribing to Netflix, which indicates this whole password sharing thing is a success.
As per information via data analytics company Antenna, it has revealed the massive increase in subscribers that are signing up for the service as they were notified about this latest policy on May 23.
As per the data analyst, the daily subscriptions to Netflix have hiked to 73,000, which is about 102% more than their previous average of 2 months. Netflix has consecutively added 100,000 subscribers on March 26 and 27. This number wasn’t that high during the pandemic.
Netflix itself promoted password sharing; now it’ll charge you for that
As we head back to the era when streaming services weren’t that popular, the company used to promote password sharing among the users. The realization of losing billions a year has woken them up. New policies are introduced over this. The latest one is a payment of $7.99 to be paid to anyone outside your household you need to share your password with. It is like a new subscription added to your account.
Netflix did issue a “cancel reaction” alert to investors after making this announcement. However, it appears to be the contrary so far. Now, this might just apply to people who shared passwords, signed up for Netflix independently, or just signed up for free trials. On the other hand, we aren’t sure how many customers have decided against Netflix at this moment. Even though it seems like wonderful news, it might be the case that fewer people signed up than actually did.
Regardless, it appears to be a smart decision for Netflix, even if most of us don’t agree with it.
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