According to new data from Antenna, Netflix is still seeing heightened numbers of additional users on its platform. In May, the month during which the crackdown started, Netflix saw 1.5 million gross additions.
In the first full month following the crackdown (June), Antenna says that Netflix got almost 3.5 million gross additions. In July, there were around 2.5 million gross additions, so not as high as in June but not back down to May’s levels either.
Netflix will be glad that it’s managing to get new subscribers added to its service as a result of the crackdown on password sharing. It was unclear at the time what would happen but it seems that users are willing to pay money instead of losing access to Netflix content in a lot of cases.
According to section 4.2 of the Netflix Terms of Service, the company says that ‘any content accessed through the service are for your personal and non-commercial use only and may not be shared with individuals beyond your household unless otherwise allowed by your subscription plan.’
Netflix has had similar wording in its terms for a long time but has only recently started clamping down as a result of a massive decline in its stock price. At its peak in November 2021, its stock was selling for nearly $700 but by June 2022, the price had fallen to around $165.
At the time of writing, the company’s stock price is around $435 a piece so that shows investors have responded very positively to the crackdown. However, Netflix will have to watch out going forward because it has been raising prices in recent years but interest rate hikes could see people with less disposable income which could lead to subscription cancellations.
Only time will reveal the longer-term impacts of the password-sharing crackdown and whether that action is enough to stop the company’s stock price from falling again.