Home News Netflix Gains Almost 6 Million Subscribers Amid Tightened Account Sharing Policies

Netflix Gains Almost 6 Million Subscribers Amid Tightened Account Sharing Policies

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Netflix subscriber growth

Netflix’s strategic move to curb password sharing appears to be yielding positive results. The company witnessed a significant rise in subscriber numbers following its decision to clamp down on account sharing among users not living in the same household.

During the second quarter of 2023, the streaming giant welcomed nearly 6 million new paying subscribers, marking an 8 percent increase. These figures corroborate earlier claims from third-party data sources, indicating the efficacy of the stricter sharing rules.

In a shareholder letter, Netflix confirmed that the anti-password-sharing initiative has not led to widespread account cancellations, but rather, it has motivated more individuals to register for their own account. “The reaction to cancel was minimal, and although we are still in the early stages of monetization, we are observing a robust conversion from borrower households to fully paid Netflix memberships and increased adoption of our ‘extra member’ feature,” the company stated.

Alongside limiting account sharing, Netflix introduced a “paid sharing” option, enabling subscribers to pay an additional $8 per month to add an “extra member” to their account. This feature is now accessible in over 100 countries, according to Netflix. Moreover, the company has streamlined its packages, confirming the discontinuation of its $10 “basic” plan in the US and UK, following a similar move in Canada.

Moving forward, Netflix plans to further restrict password sharing in the remaining countries where it hasn’t been implemented, including India, Indonesia, Kenya, and Croatia. However, the company clarified it won’t introduce its “extra member” option in these regions due to existing price cuts. Netflix suggests users in these regions can employ its tool to migrate their profile to a new account.

In related news, the platform addressed the ongoing strikes within Hollywood’s actor and writer community, revealing a $1.5 billion reduction in its projected expenditure due to the strikes. However, during a live-streamed discussion on the company’s performance, co-CEO Ted Sarandos expressed Netflix’s aversion to strikes, saying, “We’re at the negotiating table, seeking a fair resolution.”

Frequently Asked Questions (FAQs) about Netflix subscriber growth

How many new subscribers did Netflix gain in the second quarter of 2023?

Netflix gained nearly 6 million new subscribers in the second quarter of 2023.

What measures did Netflix take to curb password sharing?

Netflix implemented stricter account sharing rules to deter users from sharing passwords with individuals outside of their household. The company also introduced a “paid sharing” option that allows subscribers to add an “extra member” to their account for an additional fee.

What has been the impact of Netflix’s crackdown on password sharing?

The crackdown on password sharing did not lead to mass cancellations, as feared by some. Instead, it has led to more individuals signing up for their own Netflix accounts, resulting in a surge in subscriber numbers.

How is Netflix addressing the issue of password sharing in countries where it has already slashed prices?

In countries like India, Indonesia, Kenya, and Croatia where Netflix has already cut prices, it does not plan to offer the “extra member” feature. Instead, it encourages users to use its tool for transferring their profile to a new account.

How did the ongoing Hollywood strikes affect Netflix’s budget?

Netflix lowered its budget projections by $1.5 billion due to the ongoing Hollywood strikes among actors and writers.

More about Netflix subscriber growth

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MovieBuff July 20, 2023 - 2:32 am

was worried about the strikes affecting my favorite shows. But netflix seems to have things under control. also interesting how they’re handling the password sharing thing.

Jason Thompson July 20, 2023 - 7:19 pm

I’m all for cracking down on account sharing, but I hope Netflix isn’t gonna become too greedy, u know? Thumbs up for gaining subscribers though.

Jimbo_2023 July 20, 2023 - 7:58 pm

This password sharing thing, i dunno. Netflix was built on the idea of community and sharing. Seems like they’re moving away from that. Just my 2 cents.

Clara_98 July 21, 2023 - 1:15 am

well, it worked on me! Couldn’t share my friend’s password anymore, so I finally got my own account, lol. netflix, you sly fox…

CinephileJane July 21, 2023 - 1:53 am

the whole password sharing policy was kinda inevitable, wasn’t it? Too many people were exploiting it. I mean it’s just 8 bucks extra for an extra member, not bad.


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