Netflix’s crackdown on password sharing is a big campaign, as the company’s latest stats reveal. In a shareholder letter, Netflix claimed to have gained nearly 6 million users after the password crackdown.
Since it’s a hit, the company is expanding the password crackdown to a few remaining countries – like India, Indonesia, Kenya and Croatia now. Aside from this, Netflix is also cancelling the Basic Tier in the US and UK, following Canada last month.
Netflix Q2 2023 Stats
After seeing the first-ever downfall in it’s subscriber base early last year, Netflix finally decided to crack down on password-sharing practices worldwide. The company started blocking viewers outside a household and instead asked them to pay extra to share the account officially.
Further, the company even introduced a Basic with an Ads tier to add unaffordable users, with a slightly lower price than the regular Basic plan. All these efforts worked gradually, as Netflix reports gaining 6 million new subscribers in Q2 2023. In a letter sent to it’s shareholders, the company stated an 8% growth in paid subscriber base – aligning with third-party reports saying the same earlier.
“The cancel reaction was low, and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,”
And since it’s working as expected, Netflix is now expanding the password crackdown campaign to a few remaining countries where it didn’t enforce it till now, via India, Indonesia, Kenya and Croatia. The company also stated that it wouldn’t add the “extra member” plan in these regions, as the subscription prices are already slashed in these countries.
Lastly, Netflix confirmed that it cancelled the “basic” plan in the United States and UK after doing so in Canada last month. Soon, we may see the company dumping this plan in other countries.
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