For all those who were accustomed to sharing their Netflix passwords with friends and family, here’s an important update on how the company has taken action against this practice. Netflix released an official statement last Wednesday, indicating that its efforts to curb password sharing have been highly successful, resulting in the addition of approximately 8.8 million new users to its platform.
In other words, the company’s strategy to discourage password sharing has proven to be a significant boost to its revenue this year. Last year, Netflix took a proactive stance against password sharing and informed its user base about its intention to crack down on this practice, as it was significantly impacting its monthly and yearly revenue collections.
Now, the popular video streaming service is reaping the rewards of this approach, having welcomed more than 8 million new customers, representing a substantial 30% increase in its user database. This surge in subscribers can be seen as a summer bonus for the company.
Password sharing has long been a source of concern, as it can lead to various issues. Misuse of account credentials can result in account blocks and user account cancellations. Furthermore, in the wrong hands, these credentials can be used for scams, potentially draining the account holder’s e-wallets or bank accounts.
In a time when companies often struggle to generate revenue, such challenges can have a noticeable impact on the quality of services and content offered to users. Delays in service provision, subpar customer care experiences, and payment delays for content creators are some of the common consequences.
This summer, however, things are expected to be different from a revenue perspective. Netflix has implemented a price increase for its basic subscription in the United States, raising it from $2 to $11.99. Likewise, in the UK, subscription costs will see a £2 increase, bringing the overall cost to £18. This move is likely to contribute to the company’s revenue growth in the coming months.
