Tech

Is Netflix losing subscribers?

As a veteran streaming platform that has ruled the streaming world for decades, Netflix knows how to adjust swiftly to changes.

by
Chris Smith
November 20, 2022

Image: KnowTechie

The initial months of 2022 have not been very pleasant for Netflix. It suffered heavy losses due to losing millions of subscribers. The first two quarters of 2022 witnessed a sharp decline in Netflix subscriptions.

According to Netflix data, it has lost 200,000 active users, followed by 970,000 subscribers in the first six months.

This heavy blow can’t be ignored because Netflix is still the most-watched streaming platform.

However, ExpressVPN’s summary reveals that the top six most streamed shows and movies in 2022 still come from Netflix production.

5 Netflix is losings subscribers

netflix on a macbook sitting on a table — Image: Unsplash

Though Netflix recovered from its losses and made a huge profit in the closing months of 2022, here are the major factors responsible for its setback.

High subscription prices

One of the major reasons for losing subscribers is high subscription rates. Netflix increased subscription prices in the first quarter of 2022 in the US and Canada regions.

This led to losing of Netflix subscribers rapidly.

In January 2022, 600,000 American subscribers canceled their subscriptions. This number increased even more in the following months.

Restricted Netflix streaming services

Netflix also got a setback when it rolled out streaming services in Russia.

During the Ukraine war in 2022, Netflix stopped its services in the Russian regions. This led to the loss of more than 700,000 subscribers.

People have used Netflix by sharing passwords due to high subscription prices.

Per the survey, out of 100 million Netflix users worldwide, more than 33 million users are using the Netflix app by using the passwords of family and friends.

Netflix will soon start strictly prohibiting password-sharing practices and require an additional fee for new access points through the same account.

Competitive streaming platforms

Image: Paramount+

Netflix competes with many popular and rising streaming platforms like Disney+, Amazon Prime, Hulu, HBO Max, Paramount+, Apple TV, Peacock, etc.

These platforms are also offering amazing content and have the leverage of offering free trial offers or cheap subscription plans.

So, many Netflix users have now switched to these streaming platforms.

Quality vs. quantity in streaming content

Netflix has been known for only streaming lots of shows and movies that are not worthy.

Netflix also has a reputation for creating premium content. However, nowadays, the platform offers lots of lower-quality content.

Moreover, users also frown on Netflix for canceling new seasons of popular shows.

What is the current status of Netflix subscribers?

knowtechie roundtable netflix — Image: KnowTechie

After a rollercoaster ride of losing subscribers, Netflix is now stable.

Moreover, Netflix has performed well in the third quarter of 2022. It has managed to gain back its old subscribers and new ones.

As of now, it has added 2.4 million subscribers. It hopes to reach 4.5 million subscribers by the end of the year. Due to the good performance of the Netflix app, it is also doing well in the stock market.

Currently, Netflix boasts 223 million active subscribers. It has earned a $1.3 billion profit, and its stocks rose up to 13%.

Revamping of Netflix subscription plan

Netflix has brought an affordable subscription plan that will cost only $6.99 monthly. Though the Basic plan is ad-supported, you can watch the Netflix app without sharing its password.

Netflix is also planning to roll out subscription plans that can legally be used for sharing accounts.

Streaming good content on the Netflix platform

Netflix is also bringing promising new series, movies, and shows that will be exclusively available on the platform. Netflix has finally understood that content is king.

So, instead of going for quantity, they’re now more focused on quality content.

Final words

Netflix has managed to recover its loss by revamping its policies.

As a veteran streaming platform that has been ruling the streaming world for decades, it seems that Netflix knows how to adjust swiftly to users’ needs and requirements.

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