Netflix has greatly frowned upon password sharing for some time now, which is why the streaming company has been going through great measures to combat it as of late. The company ultimately began putting new restrictions in place earlier this year starting with international markets. By May, it started enforcing these rules domestically so, for weeks now, subscribers have had to grapple with the protocol alterations. Before the move was made, a number of analysts expressed interest in how the major decision would affect the platform moving forward. Now, we have an indication as to how well this password crackdown is actually working.
How Are The New Password-Sharing Protocols Reportedly Impacting Netflix?
It must be said that the entertainment conglomerate historically hasn’t released viewership data or information regarding subscriptions and cancellations. However, certain third-party entities do have the means to track and estimate certain statistics regarding the organization and its prized streaming service. Antenna is one of the primary sources that’s been measuring the numbers and, according to the research, the password lockdown is doing wonders for the streamer. Apparently, May 24-27 now represent the single largest four days that Netflix has had in user acquisition since the market data platform began tracking the numbers four years ago.
Let’s get a little more specific, though, shall we? Antenna claims that the streaming service saw almost 100,00 daily sign-ups on both May 26 and 27. The average of that entire four-day period reportedly reached 73,00 subscribers and, compared to the previous 60-day period, that constitutes a 102% increase. So yeah, if these numbers are anything to go by, the platform isn’t just thriving after installing its new rules – it's thriving.
What’s also particularly interesting about these figures is how they compare to data gathered amid the height of the COVID-19 lockdown back in March and April 2020. Per this recently released report, these numbers even exceed the increases that were present during those two months. That’s saying a lot, considering just how high sign-ups were doing that early stretch of quarantine.
Now, not everything is perfect for the video subscription giant, mind you, as there have been negative reactions to the new password rules. And to Netflix’s credit, it knew that backlash from subscribers was coming. Nevertheless, Antenna suggests that subscription cancellations are not outnumbering sign-ups. In fact, the data resource claims that the ratio of the former to the latter is up 25.6% compared to the last 60-day period.
Will This Success Continue In The Near Future?
We can’t say for sure, right now, if the good times will keep rolling as they have, yet there may be cause for the company to be optimistic. A JPMorgan analyst estimates that 33 million households around the world that share passwords could become paying subscribers by the end of 2025. As noted by Insider, that marks a mostly even split between new customers and those users that account holders are paying to have added to their accounts. This news may certainly be surprising to people who saw the blowback that resulted after new account-sharing rules were shared back in February.
What’s more is that Netflix is currently experiencing a considerable amount of success with a number of its original titles. The past few months have seen Arnold Schwarzengger’s FUBAR reach a milestone by hitting #1 on the service’s trending list. And months earlier, the recently renewed drama The Night Agent set a new benchmark by becoming #9 on the streamer’s all time list of TV debuts. Recent success aside though, one also has to wonder just how much content is in the can, as the ongoing writers strike has put a hold on various productions. So the well could run dry at some point, possibly enticing more subscribers to opt out.
One also has to wonder if some Netflix subscription holders might find ways to bypass the protocols. There’s also the fact that a bunch of TV shows and movies could be removed from the platform due to the company’s issue with a new media-related bill established by the UK government. While there are certainly unknowns, one would think that the company – which has not confirmed any of the numbers above – will continue to coast on this reported good fortune and try to build on it as much as it can.
