Netflix has finally begun to crack down on password sharing for the popular streaming service, and while this move has been extremely unpopular among its customers the increased regulations have proven to be quite fruitful for the company in its first couple of weeks.
Netflix has been struggling for a long time with the issue of password sharing. Users that pay for a monthly subscription have been sharing their accounts with friends and family for years now, resulting in over 100 million people around the globe watching Netflix content on a borrowed account, according to the company. Netflix quickly realized that in order to grow the company was going to need to change its stance on password sharing and ultimately become stricter.
Netflix began implementing its password-sharing crackdown across the globe on May 23 and has forced users to either purchase their own account or pay an additional $7.99 a month to add a second household. While many users have expressed their displeasure with the added requirements, Netflix was able to increase their daily user sign-ups by nearly 20,000 throughout the first week of implementing its password-sharing crackdown. The last time Netflix saw a sign-up surge as large as this one was just after the World Health Organization declared the spread of Covid-19 a global pandemic.
In addition, since the crackdown, Netflix has been able to raise its stock price by 16%.