Netflix is losing its subscribers at a large scale after enjoying a long reign as the king of streaming, Netflix is fighting tough to keep its crown. Now, for two quarters in a row Netflix, the streaming giant lost many members approximately between April and July of the last year it lost almost one million subscribers.
Although a blockbuster series has saved the OTT platform from further losses i.e. Stranger Things which has slowed down the rate of losing subscribers. In the year 2020 when the whole world is suffering from the pandemic hit where all people were stuck at home with few other options for entertainment at that time Netflix bloomed out with its all-time hit show Games of Thrones, Money Heist, Squid Games, Stranger Things, and many more.
But as pre-pandemic habits return, Netflix has struggled to attract new sign-ups – and maintain the loyalty of existing members, especially as the rising cost of living leads to people cutting back.
Why Netflix is losing its subscribers? Reasons behind the downfall of streaming
The company also faces fierce competition from the likes of Apple TV, HBO Max, Amazon Prime, and Disney+. Netflix was once the disruptor, making video rental stores like Blockbuster redundant. But the disruptor is fast becoming disrupted.
Nowadays, Netflix has become more expensive and for this reason, they have also lost many customers. Previously a standard plan in the US costs $14 in January and now it costs almost $15.49 and in 2019 it cost $11. In the UK, basic and standard plans have both increased since January by £1 a month to £6.99 and £10.99 respectively.
Mr. Bisson has said, “At some point, yes, they’re going to reach a threshold where a significant number of people say enough is enough because of the additional choice… price hikes are a more risky strategy.”
The survey says that Netflix is now managing to gain back its higher share of deserters than its rivals. Many households also continue to identify it as the streaming option they would retain if forced to have only one. In all, the company had roughly 220 million subscribers at the end of June – still well north of its closest competition.
The firm’s share price has dropped more than 60% so far this year, as investors sour on its prospects.
But the company, long accustomed to posting double-digit growth, is grappling with its most serious slowdown in years, with revenue in the April-June quarter of $7.9bn, up just 8.6% year-on-year.
The firm’s share price has dropped more than 60% so far this year, as investors sour on its prospects. Insider Intelligence analyst Ross Benes said, “Netflix’s subscriber loss was expected but it remains a sore point for a company that is wholly dependent on subscription revenue from consumers. Netflix is still the leader in video streaming but unless it finds more franchises that resonate widely, it will eventually struggle to stay ahead of competitors that are after its crown.”
Although it has come to know that the ad service that was launched in early 2023 has the potential to attract both existing customers inclined to cancel over price hikes, as well as new households hesitant to commit to a subscription, Mr. Bisson said.
