Netflix subscriber growth skyrockets amid strike, password sharing crackdown

Netflix announced Wednesday that it added about 6 million new subscribers to its platform in the past financial quarter, according to CNN. 

This addition, announced on an earnings call, comes amid strikes by both the Writers Guild of America (WGA) and Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA), as well as the streaming giant’s crackdown on password sharing. The company implemented a sunset on password sharing outside the home in late May, sending account holders with people watching outside their household emails regarding the policy.

“A Netflix account is for use by one household,” the emails read. The streaming platform told account holders that if they wanted to let someone outside the household have access, they would have to pay an extra $7.99 per month, per person. 

“Most of our revenue growth this year is from growth in volume from new paid memberships, and that’s largely driven by our paid sharing rollout,” Netflix Chief Financial Officer Spencer Neumann said on the call, according to CNN. 

Netflix also announced changes to its U.S. pricing plans Wednesday, stating it will no longer allow “new or rejoining members” to access its “Basic,” $9.99 advertisement-free plan, effective immediately. The lowest-cost ad-free option for Netflix is now $15.49 per month, plus an extra $7.99 for each member outside the household.