Netflix has seen a boost in its subscriber base after implementing a global crackdown on password sharing in the first half of 2023.
The company, which has more than 200 million subscribers worldwide, started sending emails to subscribers who are sharing their passwords “outside of their households” in May to pay an extra fee or upgrade to a higher plan.
The move was met with some backlash and cancellations from users who were used to sharing their passwords with friends and family members. Netflix estimated that more than 100 million households worldwide were sharing passwords with other people.
However, Netflix told investors in its second-quarter earnings report that the strategy paid off, as it added 5.9 million subscribers in the three months ending June 30.
The company said that after an initial wave of cancellations, many users who were sharing passwords either signed up for their own accounts or purchased the “extra member” option, which allows them to add another user to their existing plan for a small fee.
Netflix also said that the paid password sharing program helped reduce piracy and improve its content security, as it could better track and monitor the viewing habits and preferences of its users.
Netflix’s revenue rose to $8.2 billion, while its second-quarter earnings jumped to $1.49 billion. The company now has 238.4 million subscribers worldwide.
In the local scene, Netflix offers four plans in the Philippines, namely Mobile (P149 per month), Basic (P249 per month), Standard (P399 per month), and Premium (P549 per month). The company recently added an additional fee of P149 per extra member per month for Standard and Premium plans.
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