Given that Netflix reported a large increase in subscribers after cracking down on account sharing, it would appear that their efforts to discourage password sharing are having a beneficial impact. Netflix increased its paid member base by approximately 6 million in the second quarter of 2023. This is an increase of around 8%.

Netflix emphasized in a letter to shareholders that its campaign against password sharing didn’t lead to a large number of cancellations but instead encouraged more users to open new individual accounts. The low incidence of cancellations suggests that many users are adhering to the new guideline and choosing personal subscriptions at the same time.

“The cancel reaction was low, and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full-paying Netflix memberships as well as the uptake of our extra member feature,” the business added.

It is important to note that in addition to earlier initiatives taken in numerous other countries, Netflix recently added procedures to limit password sharing in India. The new regulation limits the number of users who can share an account outside of their household, which will have an effect on people who previously gave their login information to friends and relatives in a giving manner.