Latest report shows Netflix added 5.8M new subscribers after shutting down password sharing
Streaming giant Netflix has achieved a significant milestone as it reports adding 5.8 million new paying members in the United States after implementing “paid sharing” measures to crack down on password sharing. This move aimed to curb unauthorized account access and boost the platform’s revenue and earnings. The results surpassed all expert projections and reflect the effectiveness of Netflix’s strategy in retaining and attracting new subscribers.
Password sharing shutdown effect
Netflix’s recent quarterly report highlights remarkable growth in its revenue, earnings, and number of paying members, exceeding expectations in all aspects. The streaming platform’s decision to tackle password sharing in the United States proved successful, leading to the addition of 5.8 million new subscribers who transitioned to paid accounts. Netflix has plans to address this issue in most of its remaining countries.
Surprisingly, the response from users who were affected by the password sharing crackdown was relatively low. Despite being shut out of their friends’ accounts, a significant number of users opted to become paying members, demonstrating the resilience and loyalty of Netflix’s customer base.
As part of its efforts to adapt its offerings, Netflix discontinued its Basic plan in the United States, which was the most affordable ad-free option. Instead, customers can now choose from the $6.99 Standard with Ads, $15.49 Standard, or $19.99 Premium packages. Existing customers on the Basic plan will continue to have access to it, but it will no longer be available for new sign-ups once they switch to other plans.
Netflix emphasized that it currently does not rely on advertising for its revenue. However, the company is gradually developing its advertising business, collaborating with Nielsen and EDO to improve measurement and innovation for advertisers. These efforts aim to make Netflix’s ad service more appealing to businesses willing to invest in this new opportunity.
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