The long-anticipated crackdown on password sharing arrived this May, with Netflix implementing new policies regarding password sharing, requiring subscribers to pay an additional £4.99 per month to share their account with up to two people within their household.
Naturally, Netflix was concerned that many subscribers using shared accounts would choose to leave as a result of these changes. However, the streaming giant has witnessed an unexpected outcome, with daily sign-ups skyrocketing. In fact, average daily sign-ups have exceeded 70,000, marking a remarkable 102% increase compared to the previous two-month average. The peak occurred on the 26th and 27th of May, with over 100,000 new sign-ups. Antenna Data, which has been monitoring this information, revealed that Netflix attracted more new consumers during these two days than it did throughout the COVID lockdowns in 2020.
In addition to the password policy, Netflix introduced an ad-funded model in October 2022, offering accounts at a price of £4.99 in exchange for advertisements during programmes. Although the initial response was slow, the current cost-of-living crisis in 2023 has led more people to opt for downgrading their plans or starting new accounts at a lower price point than the premium service’s £15.99. Netflix has recently reported that 200,000 subscribers are now using the ad-funded service, with 20% of all new signups in the UK opting for this plan. The combination of password sharing and the ad-funded model has proven to be a winning formula for Netflix, dispelling any concerns of a mass exodus from the platform.
It is evident that people still desire access to Netflix’s premium content and the desire to be part of the conversations surrounding highly anticipated series like Stranger Things. Netflix boasts such a dedicated audience that even when numerous accounts are removed due to sharing, fans are willing to create new accounts for themselves, opting for cheaper plans to remain part of the experience.
