Netflix Subscriptions Jump as U.S. Password-Sharing Crackdown Begins

Netflix’s NFLX -0.12%decrease; red down pointing triangle long-awaited crackdown on password-sharing in the U.S. delivered a windfall of new subscribers in its earliest days, according to new data, a sign that the move is bearing fruit despite being unpopular with many users.

According to streaming analytics company Antenna, the streaming giant amassed more new subscriptions in the U.S. between May 25 and 28, shortly after Netflix notified users of the limits, than in any other four-day period since Antenna began compiling such data in 2019.

The change, which is upending yearslong password-sharing arrangements between families and friends, is critical to Netflix’s growth: The streaming giant and its rivals are struggling to bring in new subscribers, particularly in the U.S. market, where consumers can choose from a range of services that are easy to turn on and off.