According to data from research firm Antenna, Netflix signups in the United States have remained strong despite a decline from the record high seen in June. This decline coincided with Netflix’s crackdown on shared passwords, implemented in May.
In 2017, Netflix had humorously stated, “Love is sharing a password,” on social media. However, the company’s global efforts to curtail password-sharing signaled its strategy to generate new revenue streams in a saturated and competitive market.
Acquiring new subscribers and retaining existing ones has become increasingly challenging in recent years due to the proliferation of streaming options, including Disney+, Amazon Prime Video, and Warner Bros Discovery’s Max, among others.
Wall Street had expressed concerns that cracking down on password-sharing might stifle subscriber growth. However, Netflix’s measures seem to have revitalized its user base.
In July, Netflix’s gross subscriber additions decreased by 25.7% compared to the previous month, following a more than doubling of signups in June, as reported by Antenna. Nevertheless, with 2.6 million gross additions in July, Netflix’s numbers remained elevated when compared to the norm.
Netflix had previously announced plans to limit account-sharing and had been testing various approaches in select markets. The company estimated that over 100 million households had shared login credentials with individuals outside their households, leading analysts to anticipate around 50 million users eventually creating their own accounts.
Interestingly, in July, approximately 23% of new users opted for Netflix’s cheaper ad-supported plan, marking the highest adoption rate since its launch in November and representing a 4 percentage point increase from the previous month, as indicated by Antenna.
It’s worth noting that Antenna gathers its streaming data from sources like online purchase receipts and banking information.
