Netflix password crackdown working

Netflix's biggest strategy shift in years seems to be going well. Early indications are that the password-sharing crackdown in the US is resulting in an increase in subscribers. The big worry was that the new restrictions would cause users to quit.

A report published by Antenna last week shows that subscriber signups have surpassed the peak seen during Covid, a rather high bar to beat. There has also been an increase in subscription cancellations, but at a much lower rate than signups. At the end of May, just after the crackdown was enforced, Netflix had over 100 000 daily signups, a 102% increase, while cancellations were only up 25%.

The positive news resulted in the Netflix share price rising 2.5% on Friday. We will have to wait for the next quarterly update to see if the early momentum has continued. If it has, expect more gains from Netflix.

Read the report here - A first look at the impact of Netflix's password sharing crackdown.