102%↑ Compared to the Average Daily Volume of the Previous Two Months
Stock Price Also Hits 52-Week High
On the 23rd of last month, global online streaming service (OTT) Netflix implemented measures to restrict account sharing in the United States, and an analysis has emerged showing that the number of new subscribers surged as intended.
According to data released on the 9th (local time) by streaming industry analytics firm Antenna, the daily number of new subscribers during the four days following Netflix's announcement of the account sharing ban on the 23rd of last month recorded the highest level in the past four and a half years of data analysis. The average daily subscribers from the 24th to the 27th of last month was 73,000, a 102% increase compared to the daily average over the previous 60 days. The crackdown on account sharing effectively doubled the number of new subscribers. Notably, the subscriber count on the 26th and 27th of last month nearly reached 100,000 each day.
In response, Antenna explained, "This represents a larger increase than when lockdown policies were implemented in the U.S. during March to April 2020 to limit outings due to the spread of COVID-19, which led to a rise in streaming viewership."
Initially, the industry expected that many people would cancel their subscriptions altogether once Netflix account sharing became impossible. However, the cancellation rate compared to new subscriptions after the 23rd of last month increased by only 25.6% compared to the previous 60 days, according to analysis.
Following this news, Netflix's stock price in the U.S. stock market hit an intraday high of $425.90, marking a 52-week record. This represents a 159% increase in about a year compared to the stock price falling to $164.28 in June last year, and it has risen more than 40% compared to the stock price at the beginning of this year. In particular, since the announcement of the account sharing ban on the 23rd of last month (closing price of $355.99), the stock price has risen 20% over 12 trading days.
On the 23rd of last month, Netflix announced in the U.S. that it would restrict account sharing so that subscription accounts could only be used within a single household. To add someone who is not part of the same household to an existing account, a fee of $7.99 (about 10,000 KRW) or more per month must be paid. Netflix previously piloted the account sharing ban in some South American countries and stated, "Although the number of subscribers decreased in the short term, the number of subscribers increased again over time," and expressed confidence that "(the account sharing ban) will guarantee a larger revenue base in the long term."
Netflix has repeatedly stated its intention to gradually block account sharing, citing difficulties in improving profitability as many free viewers have increased worldwide due to subscribers sharing accounts.
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