Infokekinian.com – On this occasion, we will share the reasons why Netflix has lost subscribers, so watch this article until it's finished to find out more complete and clear information.
Netflix, the world's largest streaming service, has been faced with even more bad news. According to reports, there are a number of reasons why Netflix is having a hard time right now.
With subscription streaming, Netflix has virtually built its own sector, offering subscribers everything they can watch for free as well as shows they can access for a modest monthly fee.
Netflix's most expensive streaming plan is $7.99 per month, making it a very cost-effective method of entertainment. Unfortunately, the price is now skyrocketing.
Netflix announced earlier this week that it lost 200,000 subscribers in the first quarter of 2022 and expects to lose another 2 million in the second. But what's the source? Here's what I have to say about it.
Netflix Loses 200,000 Subscribers in Q1 of 2022
Netflix's earnings report for Q1 2022 shows the company lost 200,000 subscribers.
While initial estimates indicated that Netflix would add around 2.5 million new subscribers during this period, the numbers have fallen.
Furthermore, the company warned that they may lose another 2 million customers in the second quarter of 2022.
Netflix's revenue growth has also slowed markedly over the same period, partly due to a loss of subscribers and partly due to widespread account sharing by users.
Why Netflix Lost Subscribers
Netflix's loss of numbers is no doubt disappointing for the company itself and its shareholders, but it's not necessarily a surprise. Here are some reasons why this happens:
1. Netflix Withdraws Its Services From Russia
After the start of the war in Ukraine, Netflix joined hundreds of companies around the world and decided to stop its activities in Russia.
After ceasing operations in Russia, the company said it lost about 700,000 customers.
2. Netflix Increases Prices in US and Canada
In early 2022, Netflix decided to increase the price of its subscriptions in the United States and Canada.
Faced with the new fees, customers are canceling their Netflix accounts instead. Netflix claims 600,000 subscribers in North America were canceled following price hikes starting in January 2022.
3. Sharing Netflix Accounts Slows Growth
One of the most significant issues Netflix has faced in years is account sharing.
The customer has overlooked that the Terms of Service specifically prohibit sharing your password.
Netflix estimates that around 100 million households worldwide, with 30 million of them in the US and Canada, use the service without paying for it.
Considering that Netflix has 222 million subscribers worldwide, adding another 100 million would be a huge feat.
4. Netflix Keeps Losing Content From Media Companies
In recent years, Netflix has lost a lot of content from major networks across the US.
Whether we're talking about shows from NBC, CBS, AMC, and so on, all of them have shifted to other streaming platforms.
Media companies have also joined forces, launching their own streaming services, and pushing their content through those outlets instead of licensing through Netflix.
This has prompted Netflix to invest billions in creating original content. While Netflix original content is fine, people want to watch some of their favorites and old school classics on TV.
5. Netflix subscriptions are getting more expensive
Netflix initially costs $7.99 per month (Rp. 115 thousand). However, in 2022 the Netflix subscription rose to $15.49 (Rp 224 thousand), almost double the previous amount.
These price hikes continue to anger even the most loyal Netflix subscribers. In fact, in the midst of economic difficulties due to the COVID-19 Pandemic, Netflix is considered to be troublesome for subscribers.
6. Netflix Has A Lot Of Bad Movies & Shows
Netflix is considered a less creative studio because it removes their own content and does little to address the problem.
In fact, movies that are considered good are canceled and offer bad movies or shows to the audience.
7. There Are Too Many Streaming Services
Of course, there's one reason why Netflix lost subscribers they couldn't do much about, and that's the enormous amount of competition they now have in the streaming arena.
Currently, there are too many streaming services available. In addition to Netflix, Hulu, HBO Max, and Amazon Prime Video, we have Peacock, Paramount+, Disney+, Apple TV+, ESPN+, etc.
Each platform features a specific set of shows and movies that people are looking for, so it all comes down to which ones they prefer to pay to watch.
Sometimes, Netflix might not cut it, especially since it's also one of the more expensive options on the market.
Netflix's Plan to Fight These Losses
Netflix's growth has slowed down a bit, so it's time for the company to take further steps to ensure it wins the streaming wars.
Adding customers and maintaining revenue will require more work going forward. One of the first things Netflix will probably tackle is account sharing.
Netflix is even running a trial asking subscribers in some countries to voluntarily pay extra to be allowed to share their accounts while also making the whole experience safer for everyone involved.
Therefore, it's safe to assume that action against password sharing will be implemented sooner rather than later.
Another thing Netflix admits to considering is launching an ad-supported plan. Most streaming services offer such plans, including Hulu, Peacock, and Paramount+.
Offering a cheaper plan may be a good solution, especially considering how many people decided to discontinue Netflix after its latest price increase.
Netflix Losing Subscribers Isn't the End of the World
While it's true that losing subscribers is a hard pill to swallow for Netflix, especially after more than a decade of growth, we have to admit that special circumstances led to this.
However, in the end, as consumers, we have to decide which platforms we want to subscribe to and which ones to leave.
With so many choices these days, Netflix will definitely have to be vigilant if it wants to retain its subscribers.
What do you think about Netflix Losing Its Subscribers..?
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