Netflix Registration In The United States Remains High Despite The Prohibition Of Various Passwords

Netflix is still experiencing new subscriber growth. (photo: dock. pexels)

The registration for Netflix in the United States remains high despite a decline from last June's record high after the video streaming company's tough move to tackle password sharing took effect in May. This was revealed according to data from research firm Antenna.

"Love is password sharing," Netflix has posted on X - formerly known as Twitter - in 2017, but its global crackdown on password sharing hinted at its strategy to open up new revenue streams in a saturated and competitive market.

Attracting new and preserving customers has been a difficult task in recent years as subscribers now have many options - Walt Disney's streaming service, Amazon Prime Video from Amazon.com, and Warner Bros Discovery's Max, among others. Netflix shares rose 1.7% in early trading.

Wall Street has voiced concerns that password sharing could dampen customer growth. However, Netflix's tough move has brought users back to life.

The additional gross subscriber of the video broadcasting company fell 25.7% in July compared to the previous month, after more than double registration in June, Antenna said. But the overall gross increase of 2.6 million in July remains high when compared to usual, he added.

Netflix has said last year that it will limit account sharing and test various approaches in some markets.

The company estimates that more than 100 million households have shared their entry credentials with friends and family outside their homes. This makes analysts estimate that around 50 million users will eventually create their own accounts.

About 23% of users who signed up in July selected a cheaper Netflix package with the ads - the highest since this package was launched in November - an increase of 4 percentage points from the previous month, Antenna said.

This research company obtained its streaming data from transaction records such as proof of online purchases and bancak information