(CTN News) – A new study from research firm Antenna found that Netflix (NFLX.O) subscriptions in the United States remain elevated despite a fall from June’s record high after the video-streaming pioneer cracked down on sharing passwords in May, according to data from the research firm.
It is said that “To love is to share a password,” Netflix had written on X – then known as Twitter – in 2017, but its crackdown on password-sharing in the middle of a crowded, competitive market hinted at Netflix’s strategy to open up new revenue streams in the company.
There is no doubt that attracting new subscribers and retaining old ones is becoming a difficult task in recent years as consumers have an abundance of streaming services to choose from, such as Walt Disney’s (DIS.N) streaming service, Amazon.com’s (AMZN.O) Amazon Prime Video and Warner Bros Discovery’s (WBD.O) Max.
As a result of the Wall Street turmoil over password-sharing, there were concerns that subscriber growth could be muted.
As a result of Netflix’s crackdown, the company’s addition of new users has been resuscitated.
A new report by the video-streaming company Antenna shows that gross subscriber additions fell by 25.7% in July over the previous month, after signing ups more than doubled in June.
As compared to the normal rate of 2.6 million gross additions in July, the company’s 2.6 million gross additions were overall higher than normal this month.
In the last year, Netflix had stated that it was going to limit account-sharing and that it was trying out various approaches in some markets in order to do so.
In addition, the company estimated that more than 100 million households had shared their log-in credentials with friends and family outside of their homes.
Analysts expect that about 50 million users will ultimately be able to create their own accounts as a result of this development.
According to Antenna, around 23% of Netflix customers who signed up in July chose the cheaper ad-supported Netflix plan, which is the highest since the plan was launched in November – a rise of four percentage points from a month earlier.
According to the research firm, it collects streaming data from sources such as online receipts and bank records in order to create its streaming data set.