Netflix Says There Was A 'Cancel Reaction' In Canada After Its Password-Sharing Crackdown

When Netflix cracked down on password sharing in Canada earlier this year, it sounds like Canadian customers were quick to react and cancel their subscriptions.

However, the company says it's now "pleased" with how things are going, as Canuck viewers are already flooding right back.

For a little bit of context, earlier this year, Netflix riled up its user base when it announced that it would be cracking down on password sharing by having subscribers select a "primary location" for those wanting to use the account.

That — along with the fact that many beloved Canadian shows had left the streaming service around the same time — prompted many viewers in Canada to threaten to cancel their subscriptions.

And it sounds like many did.

In a recent letter to its shareholders about its earnings in the first quarter of 2023, the streaming giant admitted that it initially received some push-back, although it doesn't seem to regret the decision.

The company confirmed that there was a "cancel reaction" in Canada following the crackdown on password sharing but said that people have been quick to return to the platform.

"As with Latin America, we see a cancel reaction in each market when we announce the news, which impacts near term member growth," the statement read, while referring to what it called "paid sharing."

"But as borrowers start to activate their own accounts and existing members add 'extra member' accounts, we see increased acquisition and revenue."

They even mentioned Canada as a specific 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."

All of this has led the streaming giant to state that they are "pleased with the results of our Q1 launches in Canada, New Zealand, Spain and Portugal, strengthening our confidence that we have the right approach."

This means that Netflix's password sharing crackdown is likely here to stay, and the company may even be looking to extend it to more countries in the future.

If you have stuck to your decision to leave the streaming service and you've been thinking about checking out other options, there are many Netflix alternatives you can try from Canada, and some of them are even free!

This article's cover image was used for illustrative purposes only.