Netflix Password Crackdown Worked as Subscribers Rose by 8%

The company said it added 5.9 million customers to its streaming subscription service during the second quarter.

Netflix reported a 3% rise in revenue last quarter, after cracking down on password sharing across the platform.

The market leading streaming giant has become serious about stopping its subscribers from sharing their passwords with family, friends, and anyone else who hadn’t logged out of it. The move, which was unpopular with its fan base, proved to be a financial success according to figures released on Wednesday.

While the rest of Hollywood is in turmoil, Netflix has reason to roll out the red carpet. The company said it added 5.9 million customers to its streaming subscription service during the second quarter amid its crackdown on password sharing. They said it would roll out its new policy to the rest of its customers on Wednesday.

The rise in new customers seems to correlate with a rise in revenue. The company noted revenue of $8.19 billion in the earnings report, up 3% from $7.97 billion in the prior-year period.

Netflix’ Growth Plan Continues to Pay Off

Netflix didn’t speculate over how many of the new accounts have come from the new password sharing crackdown. Co-CEO Greg Peters said Wednesday that the company will not see the full effect of the password sharing policy for several quarters.

What’s more, they said it was too early to report a breakdown of revenue from the ad-supported tier — as well as the accounts that have come from the new password policy.

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The ad-supported tier is a new “Basic with ads” subscription type rolled out in the US in late 2022. The plan costs $6.99 per month and is a less expensive plan that comes with commercials — a first for the streaming giant. Users are said to see roughly 4-5 minutes of ads per hour of viewing.

Netflix said it expects a rise in revenue in the second half of the year as it begins “to see the full benefits of paid sharing plus the steady growth in our ad-supported plan.”

Netflix said it now forecasts revenue of $8.5 billion, up 7% year over year, for the third quarter and expects revenue growth in the fourth quarter to “accelerate more substantially.” This positive outlook is attributed to more average paid memberships and revenue from advertisers.

What Is the New Netflix Subscription Sharing Policy?

Netflix is rolling out the new subscription sharing policy by location, so users should check in the rules for the country in which they have their Netflix subscription. In the U.S. the Netflix policy update stated that:

“A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices.”

There are 3 new controls and features to help users manage their account and users:

  • Check who’s using your Netflix – Allows you to review which devices are signed into your account, to sign those devices out of your account, and to consider changing your password to stop them signing back in.
  • Transfer a profile – If you want to continue sharing with someone outside of your household, anyone on your account can share a profile to a new membership that they pay for.
  • Buy an extra member – For an additional cost you can share your Netflix account with someone who doesn’t live with you.
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Abby Ward is a contributor at and freelance search engine marketing (SEM) specialist. Since graduating from Kingston University London in 2015 with Bachelor's degree in Journalism with French, she has worked in many areas of digital marketing including website management, SEO, and paid media. Her specialist topics span her professional and personal interests in search social media, ad-tech, education, food & beverage, hospitality, and business.
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