Netflix’s Password Sharing Crackdown Worked; Sees Huge Growth in Subscriber Numbers

Netflix began its password-sharing crackdown in more than 100 countries last month.

  • Netflix witnessed massive growth in new sign-ups after announcing the password-sharing crackdown in May 2023.
  • The OTT giant launched tools like Transfer Profile and Manage Access and Devices in May to make it challenging to share passwords.
  • According to Netflix, over 100 million households were sharing Netflix accounts.

Netflix records four single-largest days of US subscribers acquisition since 2019, according to the research company Antenna. According to the report, the boost in daily sign-ups of new subscriptions came after Netflix started cracking down on households sharing their Netflix password with individuals not living in the same household. The company is forcing people who share a Netflix account despite not living in the same household to either leave or sign up for a new subscription. There were backlashes and predictions that Netflix might lose subscribers. However, the company emerged stronger from this move. Here are all details you need to know.

Netflix Enjoys Subscriber Boost After Cracking Down on Password Sharing

Netflix's daily sign-ups increased after password-sharing crackdown in the US.
Netflix’s daily sign-ups increased after the password-sharing crackdown in the US.

According to Antenna, Netflix witnessed its highest-ever daily sign-up rate on and between May 25 – May 28. As per the report, the OTT giant added around 1,00,000 new subscribers on May 26 and May 27. Antenna also reported that after its latest announcement on the password-sharing crackdown, average daily sign-ups grew by 102% compared to the previous 60 days’ figure. Reportedly, these numbers are higher than the growth recorded during the pandemic when everyone was indoors and streaming content. While the company also witnessed cancellations, as expected, the number was not enough to offset the growth. More users signed up for a new account than those who dropped out, making the password-sharing crackdown a success for Netflix.

In its blog titled “Update on Sharing,” posted on May 23, Netflix announced that it would start sending an email to members sharing Netflix outside their households in the US. According to the company stated that “a Netflix account is for use by one household. Everyone in that household can use Netflix wherever they are — at home, on the go, on holiday.” To this extent, Netflix started rolling out two new features it announced in February 2023. These are Transfer Profile and Buy an extra member.

In February 2023, Netflix stated in a blog post titled “An Update on Sharing” that more than 100 million households are sharing accounts, impacting its revenue and ability to invest in great shows and films. In the same blog post, Netflix introduced tools like setting a primary location for the Netflix account, managing access, buying an extra member, and more.

Anyone living in the primary location can access the account anytime from anywhere. The company also introduced Transfer Profile for members who buy a new subscription to leave an existing shared account. With this feature, they can transfer their personalized recommendations, viewing history, My List, saved games, and more to the new account.

Giving a respite to those who still want to share their passwords with friends who don’t live in the same household, Netflix has introduced Buy an extra member. This allows users to add extra members at an additional monthly cost of $7.99 (~Rs 660). Netflix has also enabled users to check who is using their Netflix through a new Manage Access and Devices page. Users can check which devices are signed in and log out of devices that should not have access.