Password crackdown boosts Netflix with more than 5 million new customers signing up over the summer

More than 5 million people signed up to Netflix over the summer, as a crackdown on password sharing and a string of hit shows boosted business.

The US streaming giant said subscriber numbers rose by 5.1 million to 283 million in the three months to September 30.

The surge came as it capitalized on efforts to clamp down on account sharing, forcing viewers to pay to watch its shows rather than using a borrowed password.

The number of paying customers was slightly higher than the 282 million expected by analysts.

But it was a slower increase compared to the same quarter last year, when 8.8 million new users were registered.

While Netflix thrived during Covid, when many people were confined to their homes, later analysts questioned whether it could maintain this momentum.

But revenue grew 15 per cent to £7.6bn compared with the same period last year, beating Wall Street experts’ expectations.

Many have also signed up to watch Netflix shows, including Emily in Paris starring Lily Collins, The Perfect Couple starring Nicole Kidman, and controversial global sensation Baby Reindeer.

Last night was one of the last times Netflix will update shareholders on subscriber numbers as it plans to focus on other metrics, such as revenue, next year.

Last week the company recorded its highest ever revenue in the UK after a crackdown on password sharing boosted business.

Revenue reached £1.7 billion last year, up 8 percent on 2022, according to accounts filed by its British subsidiary Netflix Services UK.

UK profits rose almost 80 per cent to £61 million.

The US group attributed this to a “larger member base” and said the number of paid subscribers grew by 7 percent.

Last year, Netflix started charging an extra £4.99 a month for adding someone from a different household to an account.

Previously, users could share passwords. More subscribers were registered despite the increases. Netflix’s global base reached 270 million in April.