Netflix has seen significant subscriber growth over the past two years since it began cracking down on password sharing, but analysts believe that rapid growth could soon run out of steam.
Netflix has seen significant user growth over the past two years, driven largely by people who had been using other people's login credentials and now signed up for their own accounts, according to a report from research firm MoffettNathanson.
This shows that Netflix is just getting existing viewers to pay, rather than attracting a large number of new customers.
The company's analysts concluded: "This means that Netflix's increased levels of global user growth do not represent a significant expansion of its user base. It is simply very successful in getting its existing user base to pay."
Since the crackdown on shared passwords began in May 2023, Netflix's number of registered users has grown by nearly 27% as of the fourth quarter of 2024, from about 238 million to more than 301 million.
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