Netflix’s Plan To Boost Signups By Cracking Down on Password Sharing Is Paying Off

A few months back, Netflix made a decision to crack down on password sharing in order to gain more subscribers. The good piece of news for the streaming giant is that their decision to crack down on Netflix Password Sharing is reaping the rewards. According to the video-streaming giant, 5.9 million paying accounts have been added during the quarter ending June 30. It has taken Netflix’s global subscriber base to just over 238 million members.

Netflix Password Sharing Crackdown Is In Full Swing

No doubt, the latest news confirms data from a research firm that was shared last month. It clearly showed that the step against account sharing was having a positive impact on the number of Netflix subscribers. The boost was more extensive than expected as it follows a period of slow growth following the pandemic. The point worth mentioning here is that growing demands on household budgets and increasing competition in the streaming sector have been building pressure, however, Netflix’s strategic action is to take a more rigid stance on cases where people share their passwords with others outside their homes. It no doubt looks like a smart move as many people have been borrowing passwords and switching to setting up their own accounts.

Reports claim that Netflix’s second-quarter revenue was $8.19 billion, scoring a year-on-year increase of 3% from $7.97 billion. Moreover, their Net income is also $1.49 billion, up from $1.44 billion a year earlier. Netflix claims that it started charging a fee for password sharing in more than 100 countries back in May. As a result, the streaming platform is now seeing a:

“healthy conversion of borrower households into full paying Netflix memberships.”