Netflix: the end of account sharing generates subscriptions

2023-06-11 14:26:19

First encouraging signs in the United States for Netflix on its new policy of preventing its subscribers from sharing their account outside their homes. According to the research company Antenna, the American company behind the streaming revolution has garnered an average of 70,000 additional subscribers on each of the first four days of this new constraint, from May 23, reports the Bloomberg agency. This represents a doubling compared to the average of the previous 60 days.

On two of these days, subscriptions even reached the threshold of 100,000. Over this short four-day period, it is the best performance recorded by Antenna since it began compiling this data from credit cards and receipts for online purchases four and a half years ago. Unsubscribes also increased, but to a lesser extent.

doubling

Curbing subscription sharing, which concerns no less than 100 million accounts out of a total of 232 million worldwide, is one of the important vectors for the platform’s continued growth in a more difficult environment. As well as the introduction of a cheaper but imposing offer to watch and which finally seems to bring in more than a classic subscription. “In the United States, for example, our tariff with has a total revenue per subscriber greater than for our basic service”, assured the group in April.

The United States is not the first test country on account sharing, but its domestic market remains the most important for the company. These new restrictions, which are making a lot of noise as Netflix has imposed itself in the world, were first introduced in Canada, Spain, Portugal, among others. Since May 23, American users, but also French and a hundred other countries are also concerned. They must pay a supplement of 6 euros if they want to share their access codes with people outside their household.

Pillar of the new strategy

In the first test countries, the maneuver first generated cancellations of subscriptions in the first quarter. Netflix therefore delayed the deployment of this limitation, which the group did not consider useful in its period of strong growth.

Although he felt in April when presenting his results that his attempt was a success, he said he was making adjustments.

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