Netflix’s password-sharing crackdown is doing what it was intended to do: increase the streamer’s subscriber count.
As revealed in Netflix’s third-quarter earnings on Wednesday, the streamer added 8.8 million new subscribers in the months of July, August and September, marking the quarter its best since Q2, 2020, via IGN.
For comparison, in Q3 of 2022, the streamer gained 2.4 million subscribers.
Netflix’s password-sharing crackdown began in May 2023, when it started offering subscribers the option to add an extra member outside of their household to their plan for an additional $7.99 per month, instead of allowing them to share their account for free.
The streamer also announced a $5.99/month ‘Standard with Ads’ tier that has successfully converted some non-paying users to get their own subscriptions.
According to Netflix, the cancellation rate due to the password-sharing crackdown was low and below its expectations, and the retention rate of the new members was high and healthy. Further, the move has also encouraged other streaming services, like Disney+, to follow suit.
Elsewhere, Netflix has also decided to raise the prices of its basic and premium plans in the U.S., U.K., and France.
The U.S.
- Basic Plan: Was $9.99, now $11.99
- Premium Plan: Was $19.99, now $22.99
The U.K.
- Basic Plan: Was £6.99, now £7.99
- Premium Plan: Was £15.99, now £17.99
France
- Basic Plan: Was 8.99 Euros, now 10.99 Euros
- Premium Plan: Now 19.99 Euros
No price increases have been reported for Canada as of yet.
Find out what’s coming to Netflix in October 2023 here.
