Netflix says more Canadians are subscribing since password sharing crackdown
More Canadians are subscribing to Netflix following its controversial decision to crack down on password sharing earlier this year, the company reported on Tuesday.
The streaming service made the move back in February to kill password sharing after years of it being available, with many Canadians voicing strong opinions on the decision.
Netflix noted that it saw a “cancel reaction” in Canada that impacted near-term member growth however, the rise in subscribers in the country has made a comeback since password sharing was blocked.
“For example, in Canada, which we believe is a reliable predictor for the US, our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the US,” Netflix stated in its Q1 2023 earnings letter.
The crushing of password sharing meant that any device that tries to access an account from outside of an authorized location, as determined by factors such as IP address and online activity, is unable to do so.
The company added that it’s “pleased with the results” of paid sharing in Canada, New Zealand, Spain, and Portugal,” which it says are “strengthening our confidence that we have the right approach.”
Due to the success of the rollouts in Canada and the aforementioned countries, the company says it will expand paid sharing to the US by the end of June.
Do you think Netflix made the choice cracking down on password sharing? Have you made a new membership for yourself? Let us know in the comments.