Netflix sign ups increase as US cracks down on password sharing

Netflix has reported an increase in the number of daily sign-ups in the United States. These sign-ups have increased over the past few days as the streaming giant cracks down on password sharing. Netflix started cracking down on password sharing on May 23 in a move aimed at increasing the number of users and revenues on the platform.

Netflix sign-ups increase as US cracks down on password sharing

The report on the increased number of new sign-ups at the streaming platform has triggered an increase in the value of the company’s shares. Netflix shares increased by 2.60% on Friday to reach $420 at the time of market close, with investors expressing their trust in the company’s potential for growth.

The streaming industry is experiencing stiff competition from some of the largest players. The companies operating in this space are now looking for new ways to generate income while increasing their user base in a market that has become saturated and as the fears of economic uncertainty affect spending patterns.

Netflix took a bold move to crack down on password sharing and maintain high user numbers on the platform. The streaming company is currently regulating the sharing of account passwords among family and friends. The recent move by the company is a massive turnaround for Netflix, as the company had previously advocated for password sharing, saying that “Love is sharing a password.”

The earlier estimates that were shared by Netflix had said that over 100 million households have shared their log-in credentials to the people that exist outside their homes. The new guidelines passed by the streaming giant will ensure that users based in the United States can add a member that is not part of their home at an additional fee of $8 each month.

The changes announced by Netflix already appear to be having some positive effects. The company reported daily sign ups of nearly 100,000 on May 26 and May 27 according to data shared by Antenna.

Netflix expands password sharing crackdown to other countries

The crackdown on password sharing is not just limited to the United States. The streaming giant has expanded the crackdown on password sharing to over 100 more countries. However, the company has not shared an official statement on the efforts that have been made so far and the significant increase in the number of new users in the US.

The streaming giant also posted the four largest days of new user acquisitions in the United States since the new guideline came into effect. These changes came into effect in the four and a half years that Antenna has been sharing data on the company’s growth and changes. Antenna is a platform that gathers data from third-party platforms tracking online activities.

The recent increase has also exceeded the levels that were seen during the initial COVID lockdown between March and April 2020. It shows that user numbers are rising as more people are forced to create their own accounts.