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Netflix's big password-sharing crackdown bet pays off, as new signups keep rolling in
When Netflix started its crackdown on password sharing in May, the general consensus from social media users was that they were done with the service. Numbers from June, however, showed the streaming giant had actually seen a record number of signups.
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If there were any questions as to whether or not the crackdown was good for business, there seems to be an answer. New numbers from July show that while there weren't quite as many new additions as in June (25% less, in fact), the spike in signups is continuing as Netflix still added over 2.5 million new accounts last month. In the months leading up to the password sharing stoppage (going back to August of 2022), the streaming service averaged between 1 million and 1.5 million each month.
For the second month in a row, Netflix leads all streaming services for total number of new signups, accounting for one out of every five paid streaming subscriptions.
This data comes courtesy of Antenna, a subscription analytics service.
Antenna added that 23% of new Netflix signups were for its more affordable ad-supported plan, up from June, and the biggest percentage for a month since that plan launched late last year. That's likely due in part to the fact that Netflix axed its cheapest ad-free plan.
Also: The best live TV streaming platforms so you can finally ditch the cable
Netflix didn't used to care about the practice of sharing passwords, even going so far as to encourage it in social media posts. But as the number of people using someone else's account surpassed 100 million according to estimates, Netflix decided it was time to chase down some of that lost money.
Will the Netflix resurgence continue? In a streaming market that's more fragmented and competitive than ever before, that's tough to say. But given that other streaming services have followed Netflix's lead in keeping a lid on account sharing, it's safe to say that what Netflix is doing is working.