Netflix sees massive subscriber jump after password-sharing crackdown

[Daniel Sims]

In brief: Much to the chagrin of millions of subscribers, Netflix's new password-sharing block seems to have had its intended effect. The measure, designed to prevent viewers from sharing their accounts with people outside their homes, has given the streaming service its largest spike in new subscriptions in four years.

According to a third-party tracker, Netflix gained more new subscribers in the four days immediately following the start of its password-sharing crackdown in the US than in any similar period since 2019. The numbers will likely signal to the company that it made the right decision and could convince competing streaming services to follow suit.

Before the new policy, potentially a third of Netflix subscribers in the US shared their password with someone outside their homes. On May 23, the company started sending emails to users confirming that account moochers would have to pay an additional fee to continue watching Netflix.

Netflix tracks each subscriber's main household account behavior, device IDs, and IP addresses. Adding a new user who doesn't share the account holder's IP address now costs $7.99 a month in the US and £4.99 in the UK. Subscribers to the service's premium 4K tier can add two extra users.

Moreover, Netflix now requires users to log in from their homes once a month. To stream while traveling, the company advises account holders to log in from home immediately before leaving. There doesn't seem to be a way to keep watching Netflix after being away from home for more than 31 days.

Data from streaming analytics company Antenna shows an average of around 73,000 new daily subscriptions in the US between May 25 and May 28, a larger spike than any since the company's records began in 2019. A surge in cancellations also followed the crackdown, but the increase in signups significantly outweighed it. Netflix's stock price jumped by around 10 percent during the period and has since climbed significantly. The only other massive subscription spike Antenna recorded was between May and April 2020, soon after the pandemic lockdowns started.

Antenna tracks users who pay for accounts through channels like services' web pages, mobile apps, and set-top boxes. The company doesn't count free trials, complimentary hotel access, subscriptions paid by corporations, or subscribers in US territories. It uses an alternative methodology to estimate the number of subscribers who receive access through mobile phone plans.

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https://www.techspot.com/news/99017-netflix-sees-massive-subscriber-jump-after-password-sharing.html

 

[Lounds]

So much greed, the whole point of netflix was to be value for money away from cable over priced packages.

 

[mrvco]

I have to assume this is going to suck for long-haul truckers.

 

[m4a4]

Eh, don't know what the unsubscriber count will be around that time. I'm sure it isn't going to have this look too good.

At least, I'd hope the majority of people don't reward Netflix for screwing them...

 

[hahahanoobs]

It was silly for people to think they were entitled to sharing accounts in the first place. The whole thing was like watching children cry when told it's time for bed, and now it's morning and little junior is smiling and patiently waiting for breakfast.

It never ends...

 

[J95qRP7]

It was silly for people to think they were entitled to sharing accounts in the first place. The whole thing was like watching children cry when told it's time for bed, and now it's morning and little junior is smiling and patiently waiting for breakfast.

It never ends...

If I'm paying for the top plan, which has 4 simultaneous streams, why can't it be to people outside my physical location? From Netflix's perspective, 4 streams coming from one location or 4 streams coming from 4 locations is the same thing.
Not to mention in the early days, Netflix literally said to share your password.

https://twitter.com/i/web/status/840276073040371712

This move is just about bumping up subscribers, to appease Wall Street.

 

[hahahanoobs]

If I'm paying for the top plan, which has 4 simultaneous streams, why can't it be to people outside my physical location? From Netflix's perspective, 4 streams coming from one location or 4 streams coming from 4 locations is the same thing.
Not to mention in the early days, Netflix literally said to share your password.

https://twitter.com/i/web/status/840276073040371712

This move is just about bumping up subscribers, to appease Wall Street.

That tweet was from 2017.
Product pricing goes up all the time. So do early promotions and perks from new companies to attract users. It's always been like this.

Competition I keep hearing people screech about allows you to shop elsewhere. That clearly didn't happen. The opposite actually according to this article.

 

[J95qRP7]

What does the EULA say?

Well now you're moving the goal posts. People are upset/frustrated because they were told they could do something by the company. The company has then let this happen by users for at least 6 years and are now changing the terms.

 

[hahahanoobs]

Well now you're moving the goal posts. People are upset/frustrated because they were told they could do something by the company. The company has then let this happen by users for at least 6 years and are now changing the terms.

How many streaming platforms are allowing password sharing right now?

If consumers read the fine print they'd see a lot of times it will say terms are subject to change....

 

[hahahanoobs]

So much greed, the whole point of netflix was to be value for money away from cable over priced packages.

Who's point though?

 

[axiomatic13]

I swear people are dumb. This issue is defeated with a VPN easily.

 

[emmzo]

How many streaming platforms are allowing password sharing right now?

If consumers read the fine print they'd see a lot of times it will say terms are subject to change....

How many? All of them. Btw, are you a lawyer for Netflix? I`m having a hard time with pretentious people supporting crap corporate decisions against costumers. People are entitled to whine, because the same service is now charging more, simply because Netflix wants more money. They didn`t upgrade anything, they didn`t do sh1t, they just want more money. Exponential growth won`t come with predatory practices. If people are so stupid to indulge that, soon enough they will pay one device per person full of commercials and like it. Fck that! Time to sail the high seas! Ahoy!

 

[Xclusiveitalian]

The subscriber count jumped due to the free 1st month signups. Expect the largest loss of subs next month.

 

[brucek]

It feels obvious to me that of course one subscription is for you personally and in this case for your household members as well.

The idea that it could cover an unlimited number of people you wanted to include outside of that forever feels silly and non-intuitive to me.

But, given Netflix did appear to communicate this expectation at various points, and do little to challenge it for many years, any turbulence now is purely on them.

Personally as someone who has been paying for their own subscription all along, I'm more concerned with the significant increase in price over the years. If this fixes the moocher problem maybe they can roll some of that back or at least slow the increase rate.

 

[NintPlayBox]

Netflix's Wins.... Flawless Victory!

 

[NintPlayBox]

The subscriber count jumped due to the free 1st month signups. Expect the largest loss of subs next month.

Sure....
Because none of those "free trials would subscribe, right?"..

 

[yukka]

Not being able to use it if you are away from home for more than 30 days is a **** move. I suppose you might cancel your sub and buy another sub and let that register your hotel IP or whatever and turn off auto renew to get another 30 days. Stupid. Has to be a more intelligent way of letting the main account holder use the service away from home.

 

[texasrattler]

I swear people are dumb. This issue is defeated with a VPN easily.

I believe Netflix has blocked accounts using vpns. This was done a few years back. From my understanding they know if you are using one or not.

 

[hahahanoobs]

Sure....
Because none of those "free trials would subscribe, right?"..

They aren't happy until they can find negativity in something.

 

[Kashim]

I swear people are dumb. This issue is defeated with a VPN easily.

I swear people are dumb. The whole point of password sharing was to avoid having to pay for a service. I'm sure those people would be happy to pay for a different service (VPN) to avoid paying for Netflix. At that point you might as well just pay for Netflix and avoid the hassle of dealing with a VPN. Fun fact: most of the people trying to get free Netflix probably don't understand what a VPN is, how it works, how to set it up, etc.

 

[Kashim]

So much greed, the whole point of netflix was to be value for money away from cable over priced packages.

Yes, Netflix is greedy because they let people basically steal their service for years and finally said it's enough. Give people something for free and if you ever try to take it away they will immediately cry foul and act all entitled to the freebie. Name one other service (any type) where you pay for it and you can freely share it with others and the company just lets you do it.

 

[Vanderlinde]

Yep. It's bin stated in the terms and conditions for since it existed. They are just enforcing the obvious now. And as a side effect suddenly more signups. So it works. Perhaps they can put the budget into obtaining good titles instead of netflix exclusives.

 

[Srksi]

Nah, people probably just wanted to see new Cleopatra...

 

[emmzo]

Yes, Netflix is greedy because they let people basically steal their service for years and finally said it's enough. Give people something for free and if you ever try to take it away they will immediately cry foul and act all entitled to the freebie. Name one other service (any type) where you pay for it and you can freely share it with others and the company just lets you do it.

You got it all wrong. Their service doesn't deserve what they're asking for it. Nothing is free. The accounts were paid. Password sharing happened because they needed more people. They intentionally let it go. But the price was high, so without sharing, less people would have joined. Now they're pulling this sh1t move. Ok, then, give me a decent price for premium. Make it just for 1 device, I don't care. But no, there's no options. Either this or fck off. Taking companies side when you are a customer, what can I say? People are like this, people are like that, only you are the smarter, right?

 

[Kashim]

You got it all wrong. Their service doesn't deserve what they're asking for it.

So cancel your subscription and go somewhere else. Why cry about it? There are plenty of other options out there. You're part of the group I was talking about in my post. You got something for free for so long now you don't want to give it up, so you make up excuses. Oh it was only worth it when you could share it with other people? Boo-hoo, go somewhere else and see if they let you share for free.

The accounts were paid. Password sharing happened because they needed more people. They intentionally let it go.

Your reasoning here makes no sense. They needed more people so they let the existing customers share their password? How does that bring in more people? It actually cuts into their profits. Yes, they intentionally let it go and that was their major mistake. In the beginning they were growing exponentially and it was probably too much hassle to chase down people who shared passwords or adjust their systems. Did you really think the free ride was going to last forever? Give me a break.

But the price was high, so without sharing, less people would have joined. Now they're pulling this sh1t move.

This is anecdotal. You assume less people would have joined, but you have no basis to back up that claim. If what you're saying was true then tons and tons of people would be canceling their service, but that is not happening, despite them "pulling this sh1t move" as you put it. Seems to me like most people are still happy with the service without being able to cheat and give away their passwords for free.

Taking companies side when you are a customer, what can I say? People are like this, people are like that, only you are the smarter, right?

I'm not siding with any company. I'm siding with common sense and reason. Tell me another service where you can get something extra without paying anything for it? What other service can you share with your friends without having to pay extra for it?