Crackdown on Netflix passwords drives higher sign-ups

The end of the previous year saw a sharp increase in Netflix sign-ups as users formed their own accounts in response to the company’s crackdown on password sharing. In the three months that concluded in December, the streaming behemoth acquired over 13.1 million new subscribers. That continued a trend of rise that began last year, and it was the highest for any quarter since 2020. Netflix declared that it planned to hike rates and that it was confident in its growth trajectory.

We essentially postponed pricing rises in order to introduce paid sharing. On a conference call with investors to go over its most recent quarterly update, co-chief executive Greg Peters stated, “Now that we’re through that, we’re able to resume our standard approach.” “The summary statement might be, ‘back to business as usual’.” Several of its new members chose the lowest plan offered by the company, despite the possibility of seeing adverts. According to Netflix, the plan accounted for 40% of new sign-ups in the 12 countries where it distributes advertisements, which include some of its largest markets including the US and UK.

The company’s gains are an ironic turn of events considering that for years it opposed requests to sell advertisements, claiming that doing so would negatively impact viewer experience and complicate operations due to privacy concerns and other factors. It made the announcement on Tuesday of a 10-year, $5 billion (£3.9 billion) contract to bring the most popular weekly show in pro wrestling, WWE Raw, to the platform. Numerous competitors are adopting comparable actions. For instance, Amazon wants to increase the number of live sporting events that it offers. Additionally, starting this month, Prime members will see advertisements when they watch, unless they want to pay an additional $2.99 a month. The figures, according to PP Foresight analyst Paolo Pescatore, supported Netflix’s approach.

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