Netflix changes password rule, creates new rate and gains 100,000 new subscribers in the US

the streaming platform Netflix is promoting major changes for online audiovisual production services. One of the most controversial decisions was the new rule that bars the sharing of passwords between users.

However, this change in the sharing policy Netflix surprised the market by registering a significant increase of 100 thousand new subscriptions after its implementation.

Even with a new fee for people who want to share access, the company managed to increase its reach and maintain competitiveness among online film and series platforms.

What is the reason for changing the rule about password sharing?

Netflix has registered a decrease in the number of subscribers in recent years, which represents less revenue for the company, both in terms of revenue and investment in new productions.

Because of this, the company decided, in 2022, to create new subscription models, including a cheaper subscription. This first change was positive, generating millions of signatures.

However, the platform has slowly continued to change the rules. In previous data, the company realized that more than 100 million accounts share passwords.

Therefore, Netflix reported that from May 2023 users would no longer be able to share passwords with people from other households.

102%: That was the increase in new Netflix subscribers in the US

According to Antenna, one of the platforms that monitor streaming movements, in the first days after starting the new password policy, the company had a 102% increase in the number of subscribers in the United States United.

The change date was May 23, and on May 26 and 27, 100,000 new subscribers were registered, according to the analysis.

The result even surpassed the increase in subscribers during the 2020 pandemic and lockdown. In the previous period, the record mark was 73% increase.

Understand the new rule for sharing Netflix passwords

The new rule for Netflix passwords applies to users who do not reside in the same location. The verification will be done through the internet connection and to share the Netflix password you will need to be connected to the same Wi-Fi network as the subscriber.

If the user is in another location, the subscriber can pay an extra fee to share access with more people.