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Netflix’s financial outlook is so dire right now that the company has embarked on a cost-cutting streak after losing 200,000 subscribers last quarter — with a forecast of 2 million more in the current quarter. Among other things, it reduces the number of employees and revises the decision to move forward with a series of new projects. And if all of that isn’t enough to tell you that Netflix is on shaky ground right now? How about this: A growing percentage of people who cancel their Netflix accounts are longtime subscribers.
In other words, thanks to a confluence of factors that could include anything from the end of favorite shows to favoring Netflix’s increasingly veteran streaming competitors, more and more Netflix quitters are people you thought had beaten their Netflix Loyalty card long ago. However, these same people are increasingly deciding that they have had enough and want to stop paying for their Netflix account.
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Netflix account cancellations are on the rise
Data on long-term subscriber cancellations comes from research firm Antenna, which shared the numbersThe information. In summary, Netflix account holders who have been subscribed for more than three years accounted for just 5 percent of cancellations earlier this year. However, that number shot up to 13 percent in the first quarter.
As bad as all of this may sound? Across all areas of tech and entertainment, Netflix co-CEO Reed Hastings is one of the few people you probably wouldn’t want to bet against over the long term. Of course, he’s made several company-wide leaps forward at Netflix, including jumping from DVDs to streaming. And then from streaming to an emphasis on Netflix creating its own original content for streaming. It is very likely that he will find a way through the current difficulties.
But what’s fascinating about this moment for the company is how Netflix is incrementally reversing many of the streaming service’s core principles. Longtime aversion to advertising? That’s over, with an ad-supported Netflix account tier coming soon. It used to be that everything should be bingeable at once. Now many shows follow a weekly release cadence.
Upcoming Netflix titles
All in all, suffice it to say that there’s a lot going on in Netflix’s upcoming release list. The hope is that much-anticipated titles like spy thrillers The gray man can help reverse some of these trends for the company.
In fact, this feature film not only features a Marvel star in the cast and has the biggest budget ever for a Netflix original film ($200 million). Netflix apparently thinks it will do well enough that the streamer is making it a franchise. More specifically, a trilogy.
Other prominent upcoming Netflix titles, meanwhile, are the first half of stranger things fourth season. It’s coming next weekend. A new Adam Sandler movie HurryShe, too, is coming to the platform on June 8th.
More Netflix coverage: For more Netflix news, check out the latest Netflix movies and series to watch.
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