Netflix Inc (NASDAQ:NFLX) said new user subscriptions surged in the US after telling customers it will begin clamping down on password sharing.
Customers were alerted towards the end of May that accounts were only to be shared within the same household.
The streaming service, as a result, had its four single-largest days of signing up US customers since data provider Antenna began tracking the service, according to CNBC.
On average, daily signups to Netflix reached 73,000 since the password-sharing email began rolling out, a 102% increase from the prior 60-day average.
As part of the new policy, paying members are given two options for people using their password outside of their household.
They can either transfer the profile to the person outside the household who will pay for their membership, or the member pays an extra US$7.99 a month per person.
Streaming services saw growth stagnate post-pandemic, and have been looking at ways to generate more revenue to fund content creation.
Around 100mln households share their Netflix password, accounting for nearly 43% of its global user base.
Netflix hit a year high on Friday and is up nearly 40% in 2023.