According to analytics firm Antenna, Netflix has seen a surge in sign-ups as it prepares to crack down on password sharing. The company recently sent out an email to U.S. subscribers, warning them of the new policy, and this was followed by the four largest days of user acquisition in the four and a half years that Antenna has been measuring the streaming service. In fact, on May 26 and May 27, Netflix saw nearly 100k daily sign-ups.
While cancellations have also increased during this period, the ratio of sign-ups to cancels is up by 25.6% compared to the previous 60-day period. In its notification email, Netflix made it clear that accounts are for households only. However, subscribers to the two highest subscription tiers can buy additional users for $7.99 a month on an ad-free plan. The Standard tier allows for one additional user, while the Premium tier comes with two additional subscriber add-ons. The ad-supported plan does not offer the option to add paying subscribers.
This move, which Netflix will be rolling out across its markets, was announced last year during a period of slowing subscriber growth. Billions of dollars of revenue are at stake here, and the crackdown has helped buoy Netflix stock, which has been a standout in the media space. Shares are up 2.5% today.
