Netflix (NFLX) pops as new data suggests signups remain high

Despite a drop from June's record high, signups for Netflix (NASDAQ: NFLX) in the United States have remained elevated following the video-streaming giant's implementation of a crackdown on shared passwords in May.

Data from research firm Antenna indicates that Netflix's strategy to combat password-sharing is showing signs of opening new revenue streams in a competitive market, according to Reuters.

While Netflix's crackdown initially raised concerns about potential impacts on subscriber growth, it appears to have had the opposite effect. The company's gross subscriber additions decreased by 25.7% in July compared to the previous month, but the 2.6 million gross additions in July were still higher than normal.

The company's efforts seem to be prompting users to create their own accounts, with around 23% of new signups in July opting for the cheaper ad-supported Netflix plan. This marked the highest percentage since the plan's launch in November, reflecting a shift in user preferences.

Netflix stock rose more than 1.5% Wednesday. It is up 40.6% year-to-date.

By Senad Karaahmetovic

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