As streaming competition builds and financial pressures intensify, in May, Netflix rolled out strict restrictions on password sharing in the U.S. and other countries. It was a bold move that had many wondering how the change would impact Netflix as the go-to streaming service for TV and films, and what it would mean for the rest of the subscription-based content streaming industry.
By Go Banking Rates
Original article published at: https://www.gobankingrates.com/money/business/did-you-have-to-become-new-netflix-subscriber-how-company-is-raking-in-cash/
All streaming services have been dealing with the problem of password sharing, basically since their infancy, and Netflix is no exception, but this is its first real attempt to resolve the issue.
“Historically, [Netflix] refused to deal with the problem, and at times, it actively encouraged password sharing, arguing that sharing passwords actually enabled user growth,” said Dan Goman, tech streaming expert and founder and CEO of Ateliere.
Interestingly, rather than scaring away prospective subscribers with its strict no password sharing policy, Netflix saw a boom in user growth.
“Antenna reported that immediately after the rollout, Netflix had the ‘four single largest days of U.S. user acquisition in the four and a half years that Antenna has been measuring the streaming service’,” Goman said. “On May 26 and 27, Netflix had almost 100,000 daily new sign-ups, and little to no consumer backlash.”