Since the beginning of 2022, Netflix has lost nearly 1.2 million subscribers. Are we witnessing the beginning of the end for the most popular streaming service in the world? More than one million Netflix subscribers are expected to leave the service in the second quarter of 2022, according to the company.
As a result of the company’s decisions, the second quarter of 2022 saw the company lose subscribers. Techphr investigated and found why this happened and check what the company plans to do in response.
Why Netflix Is Losing Subscribers
For the second quarter in a row, Netflix lost 970,000 subscribers, according to its Q2 2022 earnings report. If you recall, the business had a net loss of 200,000 customers in the previous year.
But the decline in subscriber numbers is not a surprise. Netflix had expected to lose two million subscribers in the first quarter of 2022, when it released its financial results for the period. As a result, the loss of less than a million subscribers in the second quarter is a far cry from what was expected.
Customers are losing interest in the service because of account sharing and competition, according to the company.
Even though Netflix’s drop in subscribers is disappointing for the company and its shareholders, it isn’t entirely unexpected. Here are a few possible explanations.
1. Netflix Pulled Its Service From Russia
While many other companies have taken a stand against Russia’s involvement in Ukraine, Netflix has decided to do the same. The company acknowledged that it had lost 700,000 subscribers after ceasing operations in Russia.
We have also seen a substantial impact on prices of the war in Ukraine since it began. To save money, some people are canceling Netflix subscriptions in order to pay for food, housing, and other necessities.
2. Netflix Hiked Up Prices in US and Canada
Netflix will raise the cost of its US and Canadian subscriptions in early 2022. Subscriptions to Netflix have been terminated as a result of the increased costs. According to Netflix, the price increase in January 2022 resulted in the cancellation of 600,000 North American subscribers.
3. Netflix Account Sharing Slows Down Growth
Account sharing has been a major problem for Netflix for many years now. Despite Netflix’s terms of service specifically prohibiting it, many users share their Netflix passwords.
In the United States and Canada, Netflix estimates that more than 100 million households are using the service without paying for it.
Adding 100 million more Netflix subscribers would be a major accomplishment, given the service’s current global subscriber count of 220.67 million.
4. Netflix Keeps Losing Content From Media Companies
Netflix has lost a significant amount of content from a number of major US networks. As far as I know, all of the major networks’ television shows have been ported over to other streaming services. Media companies like Gamedure, HBO Max and Discovery+ have merged, as a result, launching their own streaming services, and starting to push their content through those outlets rather than licensing through Netflix.
As a result, Netflix has had to pour billions of dollars into original programming. People want to watch their favorite TV shows and old-school classics, not just Netflix’s original content.
5. Quality of Content
The quality of Netflix’s original programming has been called into question as the streaming giant continues to produce new shows for its platform. In the first four weeks after the release of the fourth season of Stranger Things, there were 1.3 billion hours viewed, but many shows and movies are sub-par. It’s obvious that the company is betting on the success of a few of its titles rather than releasing a large number of low-quality ones.
If viewers can’t find anything to watch, they will keep canceling their subscriptions until the service improves. Netflix’s decision to cancel shows after one season, despite the fact that viewers become emotionally invested in the stories, has also irked many viewers.
6. There Are Too Many Streaming Services
In today’s world, there are simply too many streaming options. We have Peacock, Paramount+, Disney+, Apple TV+, ESPN+, etc. in addition to Netflix, Hulu, HBO Max, and Amazon Prime Video.
It all comes down to personal preference when it comes to which shows and movies are available on which platforms. Netflix is one of the more expensive options on the market, so it may not be the best option for everyone.
However, we must acknowledge the fact that Netflix’s loss of customers is a difficult pill to swallow, especially after more than a decade of steady growth.
If you’re a consumer, you’re ultimately in charge of choosing which platforms you want to subscribe to. If Netflix wants to retain its customers, it needs to keep up with the times.
