Netflix has announced that blocking password sharing works for itself. In its second-quarter earnings report released Wednesday, the streaming giant said it added 1.17 million new members in the US and Canada, and 5.9 million subscribers worldwide, from April to June.
As of yesterday, Netflix announced that it has banned password sharing in more than 100 countries. The company’s password sharing policy took effect in the US at the end of May, after the publisher began warning users of the extra $7.99 per month fee. Data from analytics company Antenna shows that the company saw a dramatic increase in its subscribers in the days following the ban.
Netflix stated that revenue is increasing in each region, while more users than expected are adding extra members to their accounts.
Netflix chief financial officer Spencer Neumann said during a revenue meeting that most of the company’s revenue growth this year will come from these new paid memberships as the company’s password sharing becomes more common. This is a sign that executives do not expect to raise prices again in 2023, or that other projects such as advertising or games will have a significant impact on profitability.
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