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Controversial measure Netflix works even better than expected

If you were hoping that Netflix would soon regret cracking down on password sharers, we’ve got bad news for you.

Netflix also began targeting account sharers in the Netherlands last month. The American company started doing small tests here and there years ago, and rumors of such measures have been circulating for years. However, the plans only came to fruition last year: after falling growth numbers, the tech giant had to break the glass on the emergency button to keep its shareholders happy.

Netflix hunts down account sharers

Therefore, you can no longer share your password with everyone. Upsetting, so you wouldn’t be the only one hoping Netflix reverses the controversial decision. In Canada, skeptics had some hope: the streaming service had to take a big hit in terms of growth numbers after the measures were introduced. Unfortunately, the CFO was soon able to show good numbers: After an initial dip, targeting account sharers actually resulted in more subscribers and revenue.

Because hey, the math is pretty simple. A single consumer who hitchhiked on another account prior to this situation and now subscribes is worth more than ten free riders from whom Netflix no longer earned anything, who are now being pulled out altogether. We are now seeing this dynamic in other countries as well. The company also began targeting account sharers in the United States, and the first numbers are now in.

Prime Video mocks Netflix and invites account sharing

It works better than expected…

Market research firm Antenna has shared an amazing chart. Netflix began warning US users who share an account but don’t live at the same address on May 23 of this year. In the four days that followed, the number of new subscribers to the streaming service skyrocketed. On average, the service gained 73,000 new subscribers per day. An increase of 102 percent compared to the previous sixty days.

In fact, on May 26 and 27, no less than 100,000 subscribers were added daily. That’s more than what Netflix saw happen when the first lockdowns began in 2020. When we were all in lockdown with nothing better to do. The drop in growth that Netflix warned its shareholders about after the situation in Canada therefore appears to be completely absent in the United States. Mass unsubscribes are dwarfed by the number of new subscribers.

…in America, so don’t grieve too soon

Actually, this is bad news for any consumer, even if you don’t have a Netflix subscription. After all, shareholders of competing streaming services will immediately start drinking on this kind of news. Netflix had to bite the bullet, but if the decision is really worth as much as it now seems, then it’s a no-brainer for other streaming services as well.

Well, let’s not jump to conclusions. In the long term, it remains to be seen whether these measures will actually pay off. We also don’t have Dutch figures yet, and the damage to the company’s image is also difficult to measure. After all, the controversial move doesn’t make Netflix more popular. To be continue!

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Controversial measure Netflix works even better than expected

Ritika Prasher

Hey! What's going on with TV Shows? I'll tell you. I am a TV show enthusiast that has watched over 500 TV shows and counting. I have the inside scoop on what to watch on Netflix, HBO, Amazon Prime, Hulu and more. Every TV show you want to binge watch, I've seen it. Want to know more about me, send me a mail at : [email protected]
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