Headlines of Netflix‘s imminent downfall due to its crackdown on password-sharing have been greatly exaggerated, recent data suggests. Rather than pushing its audience away, the crackdown has seen a dramatic surge in subscriptions.
Despite the ominous predictions, the streaming giant’s new subscriber count has experienced a substantial increase. Between May 21st and June 18th this year, the growth rate reached an impressive 236%.
Moreover, in the week ending June 25th, new subscriptions were up 204% compared to the week ending May 21st, mere days before the crackdown was implemented across the United States. The restriction of password sharing turned out to be a strategic move by Netflix, which identified it as a primary cause for its slowing growth rate in 2022.
As Netflix gears up to reveal its second-quarter earnings on July 19th, many industry observers are eager to learn how the new password-sharing policies have affected the company’s user numbers and revenue.
The data suggests that the company’s strategy is paying off, contributing to a surge in new subscribers rather than a decline. Subscription analytics firm Antenna also released a report in June, echoing the positive impact of Netflix’s strategy.
In the wake of the May 23rd crackdown, the report revealed that Netflix experienced its “four single largest days of U.S. user acquisition.” The results speak for themselves: instead of driving users away, Netflix’s crackdown on password-sharing has done quite the opposite.
This bold move has seemingly reinvigorated the streamer’s growth, providing a clear indication that Netflix is far from being dethroned in the streaming market.
