Netflix Annexes 6 Million New Paid Users, Results From Block Password Sharing

JAKARTA - Netflix's actions blocking users of various passwords seem to have paid off. The company successfully annexed nearly 6 million paid subscribers.

Netflix's additional paid subscribers were successfully achieved over the three months ended in June, bringing the total to more than 238 million globally.

Netflix says the paid password sharing rules are an attempt to get users to stop sharing accounts with other people outside their homes for free.

In a letter to shareholders, Netflix said the move to stop password sharing did not result in mass cancellation and actually encourage more people to register.

"The cancellation is low and while we are still in the early stages of monetization, we see a healthy conversion from a borrower's household to a full-paying Netflix membership as well as the use of our additional member features," Netflix said.

In addition to limiting account sharing, companies have started offering paid sharing features, where users can subscribe to add additional members to their accounts for $8 per month.

Now, the feature is available in more than 100 countries after expanding it earlier this year. Netflix stated that revenue in the region is now higher than before the service launched.

To continue spurring its business growth, Netflix will continue to limit password sharing in some of the remaining countries that have not done so, including India, Kenya, and Croatia, as quoted by Engadget, Thursday, July 20.

The company will not offer additional member options in the region because it has cut prices in many of these countries. Instead, users can use the tool to transfer their profile to a new account.