Too Few Netflix Subscribers Cancel Subscription as Password Sharing Crackdown Begins
Recent years have seen a boom in the streaming industry as new players flood the market and compete for users’ attention. Longtime market leader Netflix is now up against greater opposition from services like Amazon Prime Video, Disney+, and HBO Max.
Companies are concentrating on a few key areas to set themselves apart from the competition as the streaming wars heat up. The cost is one region. Despite the fact that rival streaming services now provide more cheap options, Netflix remains a premium service.
Many people believed that as competition increased, Netflix would also drop its prices, and they did offer several reasonably priced subscription alternatives. But according to their newly implemented policy, it would no longer be possible to share passwords. The number of membership cancellations should have increased as a result of this strategy, yet the actual figure is far lower than expected.
Netflix is certain that its incredible content will draw in enough subscribers
According to their Quarter 2 letter, Netflix’s recent crackdown on password sharing which was implemented in the United States has had positive effects. Despite initial worries, there hasn’t been much of a cancellation reaction, and the company is seeing a good number of borrower households upgrade to full Netflix memberships.
Their extra member service, which allows an account holder to add a member outside the home for a low cost, has also experienced a rise in usage. As a result of this change, there are now an astounding 5.9 million subscribers worldwide, bringing the total to 238.4 million.
Netflix currently only allows one account per American home and its members in order to implement the crackdown. Users in the US and other particular territories can still benefit from flexibility by adding a third-party member for $7.99 or transferring their profile to a new account, respectively.
Netflix claims that these adjustments have had little effect on account cancellations and Netflix is also very confident that its attractive content, such as the much-awaited series Rebel Moon starring Sofia Boutella will convince previous password sharers to join up for new memberships.
Has the latest crackdown by Netflix on password-sharing boosted the number of sign-ups?
In response to Netflix’s recent crackdown on password-sharing, a record number of new subscribers have signed up. Between May 25 and May 28, just a few days after the new rules went into effect, Netflix saw its best daily sign-up rate since January 2019. Although account cancellations on the platform did slightly increase, an amazing average of 73,000 new subscribers per day more than made up for this. The enthusiastic response from new customers shows the success of Netflix’s password-sharing policy.
The password-sharing policy received some criticism from rivals even though it was successful in gaining more users. Blockbuster, a longtime industry leader in home rentals, expressed its divergent stance on social media by reminding customers of their previous acceptance of video sharing. Amazon Prime Video, a streaming rival, used a more quiet strategy, stressing the importance of sharing in their slogan, “Love is sharing a password.”
Only time will tell if Netflix’s confidence in its content will be sufficient to continue to keep it as the leader in the streaming sector or not.
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Source: CBR
