How Netflix’s ban on password sharing and ad push has worked big time

Netflix’s recent measures, including limiting password sharing and introducing a cheaper ad-supported subscription, have had remarkable results. In 2023, the company enforced rules preventing users in different households from sharing the same account unless they paid extra. Though controversial, this policy led to millions of new subscribers who opted to create their own accounts. By the end of 2023, Netflix had added over 13 million new users, surpassing 260 million global subscribers.

At the same time, Netflix’s ad-supported plan, which costs less than standard subscriptions, became a popular option for new users. In some regions, this plan now accounts for 40% of all new sign-ups, helping Netflix recover from previous subscriber losses and solidifying its market leadership. These strategies have not only expanded Netflix’s subscriber base but are also expected to bring in long-term revenue from advertising.