Netflix Said 'Stop Sharing Logins' and We Listened

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Despite a login crackdown and rate hike, consumers are flocking to Netflix.
Updated Jan. 31, 2024
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No one thought Netflix would do it. They did it anyway. Now, they’re laughing all the way to the bank. 

When Netflix stated that the password-sharing days were over, they were hammered all over social media. Many said that their stock price would tank. 

Instead, Netflix has the highest subscriber rate among all the streaming services. Here's how they did it.

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The login crackdown actually helped subscription rates

Cutting out your kids from your Netflix account probably caused family issues. For Netflix, it was a boon. Or a boom. 

Users accustomed to watching blockbuster hits like Stranger Things needed their fix. Cracking down on password sharing proved to be a better tactic to increase membership than any marketing ploy. People could no longer piggyback on accounts; they signed up for memberships. Netflix did expect those locked out to acquire their accounts. However, the numbers were astounding.

At the end of the fourth quarter, Netflix picked up 31.1 million new subscribers. And their churn rate is only about 1.9% to 3.3% — that’s the lowest churn rate of all the streaming services. In total, Netflix has around 280 million subscribers. Their stock price has soared to $562 per share. They are the only profitable streaming service.

Growth even as prices went up

Netflix keeps moving the goalposts. They keep changing their rates and their plans. Yet people stick with them. Back in 2011, the streaming service charged $8 a month to use it. In 2017, Netflix hiked prices and created three new plans: Basic, Standard, and Premium. The cheapest plan, Basic, was $7.99 per month, with no HD and 1 screen. Standard is $10.99 per month, HD, and 2 screens. Premium, $13.99 per month, 4K, 4 screens.

Netflix would slowly raise their monthly rates by $1 a month. By October 2023, they phased out their cheapest plan, the $9.99 Basic ad-free one, and replaced it with a $6.99 plan that contains ads.

Now the average consumer who wants to watch ad-free streaming will have to fork over $15.49 a month for the Standard plan or $22.99 a month for the Premium plan. Premium subscribers have unlimited ad-free viewing, can use up to four devices, and download content onto six devices. They can also watch in Ultra HF and Netflix spatial audio. Standard is also ad-free, but users can only watch on two devices and download to two devices. Standard users can’t use Netflix spatial audio or watch in Ultra HF or 4K.

Why everyone keeps subscribing

Technical aspects aside, why do customers stay with Netflix? One big factor is their extensive library of movies and television shows. Original Netflix programming like Squid Game, Maestro, and Bridgerton have garnered awards and captivated viewers.

The fictional Squid Game show became so popular that a reality game show was spun off. Bridgerton viewers happily attend balls inspired by the show. Netflix’s executives are canny enough to create or buy programs that go viral. The streaming service has also garnered 34 nominations and awards for movies and shows.

Netflix has also moved into the sports arena. Their first live sports coverage was November 2023’s The Netflix Cup. Golfers and Formula 1 drivers compete at the Wynn Las Vegas Golf Club. They picked up Inside the NFL. And as of January 24th, they signed the exclusive rights to broadcast WWE’s Monday Night Raw, with a 10-year deal, $5 billion deal.

The streaming service has literally something for every member of a family. With constant innovative programming, subscribers grumble about the rate hikes, but they don’t cancel.

Bottom line

One would think that a company that continually raises its rates would lose customers. If that same company stopped users from sharing their accounts, one would think that they’d also lose subscribers. Netflix did both, and they increased their subscriber base.

Why is Netflix the only profitable streaming service? Innovation. While Netflix started out mailing DVDs, they transformed into a digital video provider, and eventually became producers. Through the years they've been able to stay at the forefront of the industry.


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Author Details

PJ Gach PJ Gach is a professional writer who has over a decade of experience covering the fashion, beauty, and lifestyle beats. Her writing credits include Shop TODAY, GoBankingRates, SPY.com, Reader's Digest, The New York Post, Rolling Stone, and more.

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