The Netflix Password Sharing Crackdown Is Officially Working

Netflix users, it’s time for some news you don’t want to hear. The Netflix password sharing crackdown is officially working despite strong opposition from people who use the streaming service.

Figures released in August show a massive increase in Netflix users in July after the password sharing crackdown across the globe. The figures released by Antenna show Netflix added 2.6 million new accounts in July.

While it’s a big figure and more significant than Netflix’s normal monthly sign up rate, it was less than June’s record-breaking new addition figure by 26%.

The increase in subscribers will be seen as a win for Netflix, which was reflected by the fact that the firm’s share price rose by 1.7% in early trading.

The spike in Netflix sign-ups following the company’s password sharing crackdown in the U.S. in late May seems to be continuing. In July, Netflix reported it had added 5.9 million new paid customers for the period ending June 30 2023, beating expectations.

Neflix’s Ad Supported Plan Gets A Boost

Netflix will also be happy its $7 ad supported plan is becoming more attractive to users. Around 23% of new Netflix sign ups in July went to the streaming platform’s ad supported plan—up 4 percentage points compared to June and the highest yet since the plan launched in November last year. Netflix will no longer offer its Basic ad free plan in the U.S., which probably contributed to the increase in sign ups.

Netflix has already begun enforcing its new password sharing rules, via emails warning people not to allow others to use their accounts. U.K. newspaper the Guardian explains how Netflix sent an email that was “polite but clear.”

“Your Netflix account is for you and the people you live with – your household,” Netflix told the person who was sharing their account, before offering them the option of adding another user for £4.99 ($6.32) a month.

Password Sharing Crackdowns Across Streaming Services

The news of Netflix’s successful password sharing crackdown comes as Disney also clamps down on people sharing their accounts. Following in the footsteps of Netflix, Disney says it will announce its new password sharing terms by the end of this year and will start cracking down in 2024.

It looks like there is no way back—password sharing crackdowns are coming and you’d be right to assume more will follow Netflix and Disney. While there has been an initial spike in growth in those subscribing to Netflix, it’s difficult to imagine it continuing at the same pace as a global economic crisis continues.

In the end, it will probably come down to a choice between streaming services—and then it’ll be about who’s offering the best content.