Video streaming giant, Netflix has seen a surge in sign-ups few days after its crack-down on password sharing that came into effect on May 23, data from research firms Antenna shows.
The news of this positive development caused a 2.3 percent rise in the company's shares during early trading, reaching $418.92.
In an effort to explore new revenue streams in a competitive market and a challenging economic climate, Netflix made the decision to regulate the sharing of account passwords with friends and family. This change marked a significant shift for a company that had previously tweeted, "Love is sharing a password."
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Netflix estimated that over 100 million households had been sharing their login credentials with individuals outside their residences. Under the new regulations, US users can now add members outside their homes by paying an additional monthly fee of $8 (nearly Rs. 650).
The company's calculations appear to have paid off, as Antenna reported that Netflix witnessed nearly 100,000 daily sign-ups on both May 26 and May 27.
Although Netflix has extended its crackdown on password-sharing to over 100 other countries, the company has not yet responded to Reuters' request for comment.
This move marks the streaming video pioneer's four largest days of user acquisition in the United States since Antenna began covering the company four and a half years ago.
The recent surge in sign-ups even surpassed the levels seen during the initial COVID-19 lockdowns in the US in March and April 2020. Antenna, which gathers data from third-party collectors that track online purchase receipts, credit, debit, and banking details with user permissions, provided this information.