Netflix began to crack down on password sharing in the United States in May this year. Password sharing refers to a user who subscribes to the Netflix service and then shares the account number and password with others, which can save costs. . Netflix believes that this behavior has affected the company’s revenue and investment, so it decided to take measures.
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Netflix’s strategy is paying off, according to data shared today by analytics firm Antenna. Netflix has averaged 73,000 daily signups in the U.S. since banning users from different addresses from sharing accounts, a 102% increase from the previous 60-day average. On May 26 and 27, Netflix’s daily registered users even approached 100,000, surpassing the peak during the new crown epidemic last year.
Netflix’s policies also resulted in some unsubscribing, but the number of unsubscribing did not exceed the number of new signups. Starting May 23, Netflix saw a 25.6% increase in sign-ups and unsubscribes compared to the previous 60 days, Antenna said.
Netflix said it has seen growth in revenue and user base after password-sharing restrictions were imposed in other countries. Netflix now requires users to identify a primary address and can only use the account within that address. There are certain allowances for travel or second homes, but Netflix now uses IP addresses and other information to limit multifamily use.
Netflix also offers some paid options that allow users to use the service at different addresses. Users can pay an additional $7.99 per month for another person to use the Standard or Premium plan (Standard or Premium), and can add up to two people (premium plan only), each of which can have their own profile, personalized recommendations and password. In addition, Netflix also provides a process to transfer personal data, so that people who previously used Netflix for free can create their own paid accounts.
Netflix currently offers four packages in the United States: $6.99 per month for an advertising package (currently about 50 RMB); $9.99 per month for a basic package without advertising, supporting 720p HD quality and limited to one device for viewing ; The standard package is $15.49 per month, which supports 1080p high-definition picture quality and two devices to watch at the same time; the advanced package is $19.99 per month, which supports 4K ultra-high-definition picture quality and four devices to watch at the same time. It should be noted that although the standard and premium packages allow multiple devices to watch at the same time, Netflix’s new policy requires that all devices must be in the same address.
