Netflix’s password sharing crackdown actually worked out in their favor
For years, Netflix users would basically buy one plan and share their account with friends or family members. This gave users a cheaper way of subscribing to the service instead of having to pay for it themselves, but since last year, Netflix started to crack down on that practice.
We were probably not alone in thinking that this would be a bad move for the company as it would mean that people would stop paying for it, but it turns out it might have had the opposite effect. This is according to a letter to shareholders in which Netflix revealed that they actually added 5.9 million new subscribers in the second quarter of the year, despite starting to crack down on password sharing.
This means that a good many users have decided that the content on Netflix is simply too good to pass up on, even if it means having to pay a bit more than they might have when they were sharing accounts. This is just speculation on our end, and we’re sure that there are probably plenty of other reasons why Netflix could have gained that many new subscriptions.
In the letter, Netflix also revealed that they do not have plans to introduce sub-accounts to some parts of the world. According to the company, this is because certain regions do not have a high penetration to begin with. Plus, with some countries, Netflix actually has cheaper mobile-only plans which might actually be more affordable than paying for a sub-account.
Source: Android Authority