ISLAMABAD: Netflix’s strategy to increase signups by taking action against password sharing is proving successful, yielding positive results for the streaming giant.
A few months ago, Netflix decided to act against password sharing to attract more subscribers. The streaming giant’s decision has proven successful, with 5.9 million paying accounts added during the quarter ending June 30. As a result, Netflix’s global subscriber base now exceeds 238 million members.
The streaming giant has received good news as their decision to crack down on Netflix password sharing is paying off and yielding positive results.
Undoubtedly, the latest news confirms data from a research firm shared last month, clearly indicating that the crackdown on account sharing has had a positive impact on Netflix’s subscriber numbers. The boost exceeded expectations, coming after a period of slow growth during the pandemic.
Notably, growing demands on household budgets and increased competition in the streaming sector have created pressure. However, Netflix’s strategic response to take a more rigid approach towards password sharing outside households seems to be paying off, encouraging numerous individuals to create their personal accounts rather than relying on borrowed passwords.
Reports indicate that Netflix’s second-quarter revenue reached $8.19 billion, marking a 3% year-on-year increase from $7.97 billion.
Additionally, their net income rose to $1.49 billion compared to $1.44 billion in the previous year. In May, Netflix implemented a fee for password sharing in more than 100 countries, leading to a healthy conversion of borrowing households into full-paying Netflix memberships. According to the latest reports, Netflix is planning to eliminate its ad-free Basic tier in the U.S. and U.K. Subscribers will be left with the options of Standard with Ads for $7 a month, Standard for $15.50 a month, and Premium for $20 a month.
