Give Netflix credit for making some radical moves that are working. The powerful streaming company was in big trouble last year when its stock price tanked, and revenues plummeted, so desperate times called for desperate measures, and the first thing they did was crack down on password sharing.
Estimates showed that over 100 million households worldwide shared an account, so seeing that lost revenue, the company announced that subscribers would no longer be able to share their passwords outside of their households. The results were immediate. On May 26 and 27th, Netflix added over 100,000 new accounts on both days, according to data reporting company Antenna. There has been a 100% increase in signups from the company’s prior 60-day average. They experienced their four single-largest days of new user sign-ups in the U.S. in May.
All that good news led to a bump in the stock price of almost 2% on Friday. Shares are over 37% higher in the past month, with a single share of Netflix stock valued at $415
right now.
The company is rolling out this new plan around password sharing around the world and has already done it in Canada, Spain, Portugal, and New Zealand.
Netflix was one of those companies that got drunk on their success during the pandemic. Government lockdowns forced people inside for months, with little to do at night except stream movies and television shows. Netflix cleaned up during that time, but it was a sugar high because numbers flattened when the world opened up.
The company reported its first subscriber loss in a decade in 2022
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