Netflix memberships are increasing as a result of the password-sharing crackdown.

Although the Netflix crackdown on password sharing is still in its early stages in the United States, it already seems to be having the desired result for the streaming service—an increase in user numbers.

Since letting its users know about its new password sharing policy in late May, Netflix has had four of its single-largest U.S. client signup days since data company Antenna started monitoring the business. According to the Antenna report, during that period, Netflix saw roughly 100,000 daily signups on two different days.

On May 23rd, Netflix started informing subscribers through emails that the rules for account sharing were changing to allow for only account sharing within the same household.

Members who find their credentials being used outside of their home have two alternatives under the new policy. The user may either pay an additional $7.99 per month for each person outside of their home or transfer the profile to the person outside of their household so that individual can start a new subscription that they pay for themselves.

Antenna reports that since the email started going out, there have been 73,000 average daily signups for Netflix, a 102% rise from the preceding 60-day average, surpassing the peak in signups during the early lockdowns of the pandemic.

When people were staying at home during lockdowns in the early stages of the pandemic, streaming services like Netflix saw a significant rise in users. But over the years that followed, that subscriber growth slowed down.

Netflix started to see a slowdown in subscriber growth in 2022, and like other media firms, it started focusing on ways to increase income. In addition to strictly prohibiting the sharing of passwords, Netflix also unveiled a more affordable, ad-supported tier.

Although Netflix's stock suffered when the company announced its first membership decline in ten years last year, it has subsequently recovered thanks to the implementation of password-sharing policies and ad-supported streaming. On Friday, its stock reached a 52-week high and has since increased by more than 40%.

More than 100 million households share accounts, or 43% of its total user base, according to the streamer. This has had an impact on its capacity to invest in new content. However, this now may change and create opportunities to invest in new content.

(Sources: cnbc.com, independent.co.uk)