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Home Tech News Africa Tech News

Netflix records subscriber increase after crackdown on password-sharing

Hauwa Ali by Hauwa Ali
June 15, 2023
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Netflix's global subscribers exceed expectations
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Netflix’s recent implementation of a password-sharing block which aims to limit account sharing among viewers outside of their households, seems to have achieved its desired outcome as it records a significant increase in the number of new subscribers.

Netflix has gained more new subscribers in the few days immediately following the initiation of its crackdown on password-sharing in the US than in any comparable period since 2019. 

Data from streaming analytics company Antenna reveals an average of approximately 73,000 new daily subscriptions in the US in three days,  surpassing any previous spike since the company began recording data in 2019.

While there was also a noticeable increase in cancellations following the crackdown, the surge in new signups outweighed it significantly.

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These numbers are likely to affirm to the company that it made the correct decision and could potentially convince other streaming services to adopt similar measures.

Read also: Netflix to expand operations in Africa

Adding new users now incurs a monthly fee

To enforce this policy, Netflix monitors the behaviour of each subscriber’s primary household account, device IDs, and IP addresses. Adding a new user who doesn’t share the account holder’s IP address now incurs a monthly fee of $7.99 in the US and £4.99 in the UK. Subscribers of the premium 4K tier can add two additional users.

Additionally, Netflix now requires subscribers to log in from their homes at least once a month. For streaming while travelling, the company advises account holders to log in from home just before departing. There doesn’t appear to be a method to continue accessing Netflix after being away for more than 31 days.

Netflix’s stock price rose by 10 percent

As a result of these developments, Netflix’s stock price experienced a rise of approximately 10 percent during that period and has continued to climb substantially. 

The prominent global streaming service that offers a wide range of movies, TV shows, documentaries, and original content, was founded in 1997 by Reed Hastings and Marc Randolph and initially started as a DVD-by-mail rental service. In 2007, Netflix introduced its streaming platform, which allowed subscribers to stream content directly to their devices over the Internet.

Today, Netflix has become one of the leading providers of on-demand streaming entertainment, with a vast library of diverse content from various genres and languages. Subscribers can access Netflix through its website or by downloading the Netflix app on supported devices such as smartphones, tablets, smart TVs, and gaming consoles.

One of the notable aspects of Netflix is its commitment to producing original content. The company has invested heavily in creating exclusive TV shows, movies, and documentaries, which are collectively known as Netflix Originals. These Originals have gained significant acclaim and popularity, earning numerous awards and nominations. Some well-known Netflix Originals include “Stranger Things,” “House of Cards,” “Narcos,” “The Crown,” “Black Mirror,” and “Money Heist.”

Netflix to crack down on password-sharing from Q2 2023

Netflix offers different subscription plans to cater to various needs. Subscribers can choose from options that allow streaming on one, two, or four devices simultaneously, with varying video quality, including high-definition (HD) and Ultra HD (4K). The service also provides personalized recommendations based on viewers’ viewing history and preferences.

Over the years, Netflix has expanded its presence globally and is now available in over 190 countries. It has revolutionized the way people consume entertainment by providing convenient and on-demand access to a vast catalog of movies and TV shows. With its continuous focus on content creation and innovation, Netflix remains a dominant force in the streaming industry.

Tags: Netflixpassword-sharing
Hauwa Ali

Hauwa Ali

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