Netflix (NFLX) shares gain on report of subscriber jump following password sharing crackdown

June 9, 2023 8:52 AM EDT

Netflix (NASDAQ: NFLX) shares jumped premarket, adding to its recent gains after The Wall Street Journal reported that the crackdown on password sharing in the US delivered a new subscriber windfall in its earliest days.

Citing data from Antenna, the WSJ said the streaming giant gained more new US subscriptions between May 25 and May 28, not long after it notified users in the US and other countries of the limits than in any other four-day period since Antenna commenced compiling the data in 2019.

Netflix shares are up over 3% premarket, adding to its 2% gain on Thursday. The stock is up 37% this year.

The jump in subscribers suggests Netflix’s decision to end password sharing is gaining results.

The move to end password sharing means users who share an account outside the same home must pay an extra $7.99 a month to watch. In addition, the number of extra members customers could add to their account is limited, depending on the tier they pay for.

By Sam Boughedda

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