(CTN News) – In a groundbreaking move, streaming giant Netflix has reported a resounding success in its crackdown on password sharing, which has resulted in an astounding addition of 5.9 billion subscribers.
The platform, which ended June with 238.4 million subscribers worldwide, is now expecting similar, if not greater, growth during the July-September period.
Significant Subscriber Growth: Netflix’s Best Q2 Performance
The nearly 6 million subscriber surge marks Netflix’s best second-quarter performance since the remarkable 10 million subscribers added in 2020, under entirely different circumstances.
Netflix management conveyed their satisfaction in a letter to shareholders, highlighting the successful conversion of borrower households into full-paying Netflix memberships due to the password-sharing crackdown.
Expanding its initiative globally, Netflix announced that the password-sharing crackdown would now apply to all markets, including previously exempt countries like Kenya, Indonesia, and India. The statement emphasized that Netflix accounts are intended for exclusive use within a single household.
As part of their strategy to further optimize the subscriber base and boost revenues, Netflix introduced a lower-priced ad-supported streaming plan earlier.
Subsequently, the company began implementing measures to block password sharing, estimated to have allowed around 100 million people to watch its content for free.
Netflix Strategizes for Higher Revenues: Basic Plan Phased Out
The crackdown on password sharing commenced last year and was progressively extended to various countries, including the US. It compelled users sharing an account outside the same household to pay an additional fee, leading many to opt for the cheaper basic advertising tier, thus further boosting subscriber numbers.
With these developments, Netflix quietly removed its $9.99/month basic plan in the US and UK. This strategic move aims to steer users towards the ad-supported tier or premium plans, thereby maximizing revenues for the platform.
Overall, Netflix’s decisive actions in tackling password sharing have proved highly fruitful, significantly expanding its subscriber base and positioning it for further growth and profitability.