Netflix says subscriber growth in Canada has increased after password-sharing crackdown

Netflix says more Canadians are subscribing to the service following its controversial password-sharing crackdown.

During its first-quarter earnings results for fiscal 2023, the company reflected on its paid sharing policies, which went into effect in Canada in February. While many people pushed back against this move, especially after years of Netflix embracing password-sharing, the streamer said during its latest earnings call that it’s nonetheless still seen growth in Canada post-crackdown.

Although the company acknowledged there was an initial ‘cancel reaction’ in Canada and the other markets which have already received paid sharing, that churn was quickly offset. “For example, in Canada, which we believe is a reliable predictor for the U.S., our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the U.S.,” wrote Netflix in its Q1 2023 earnings letter.

Overall, the company says it’s “pleased with the results” of paid sharing in Canada, New Zealand, Spain and Portugal,” which it says are “strengthening our confidence that we have the right approach.” As part of these efforts, the company says it will expand paid sharing to the U.S. by the end of June.

As of February, Netflix requires all Canadian users to set a primary streaming location so the company can recognize those who are sharing the account elsewhere. The company is charging $7.99 to those who want to add an extra member who can share their account. It’s worth noting, however, that it’s not clear to what extent, if any, Netflix has been enforcing these rules so far. Last month, a MobileSyrup survey found that the majority of respondents have still been able to share accounts without penalty.

If you’re in Canada, has Netflix blocked you from sharing an account yet? Let us know in the comments.

In related news, Netflix posted 1.75 million new streaming subscribers in Q1 2023, which was below analyst estimates of 2.06 million. Overall, the company reported earnings of $1.31 billion USD (about $1.75 billion CAD), which was down from the $1.6 billion USD (roughly $2.14 billion CAD) it brought in this time last year.

Source: Netflix