Netflix's Latest Subscriber Gains Aren't a Good Sign for Password Sharing

The company added 5.9 million new paying customers

Netflix’s password-sharing crackdown is here to stay.

In the second quarter, the streamer added 5.9 million new subscribers, reaching 238.4 million globally. And in the U.S., Netflix added 1.17 million paid subscribers.

Those additions come after Netflix rolled out its paid account-sharing initiative in more than 100 countries, including the U.S., in May. The company now said it will launch paid sharing in almost all remaining countries after seeing fewer-than-expected cancellations.

“The cancel reaction was low, and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,” Netflix said in its Q2 shareholder letter.

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