An earlier initiative by Netflix to counter password sharing, prevalent in the United States and other countries, has paid dividends. The streaming giant, as reported today, has seen an influx of 5.9 million new global subscribers in the second quarter of 2023, with over a million coming from the U.S. and Canada.
Expanding the anti-sharing initiative
Buoyed by these promising results, Netflix now plans to introduce paid sharing in virtually all remaining markets that are yet to implement these new policies. With the scrapping of multi-household password sharing in the U.S. in May, an immediate surge in signups was observed.
Netflix reports that every region where paid sharing has been launched is witnessing an uptick in revenue, and new registrations are outpacing cancellations. The firm saw a year-over-year revenue growth of 2.7 percent. Looking ahead, Netflix anticipates this growth to accelerate as the full impact of paid sharing comes into play, along with greater acceptance of its ad-supported plan.
New era: Phasing out password sharing
Previously, Netflix permitted account sharing with individuals beyond the immediate household, a practice that is no longer tolerated. The mandate now requires all Netflix account users to reside in the same location, with access limitations enforced based on IP and other locational data. Netflix offered tools to enable shared account users to establish their own accounts.
Netflix approximated that over 100 million households were partaking in account sharing, an action that hindered its capacity to “invest in and improve Netflix” for its paid members.
What’s your take on this, dear readers? We would love to hear your thoughts on this issue. Please share your perspectives with us in the comment section below!
| Subscriber Growth | U.S. and Canada | Global |
|---|---|---|
| Q2 2023 | >1 Million | 5.9 Million |
We want to keep you updated with notifications.