Netflix got off to a rough start in early 2022, and the platform is losing tons of longtime subscribers. Research shows that 13 percent of Netflix’s cancellations in the first quarter came from users who had been on the platform for three years or more.
This research is by Antenna and reported by The information. As part of the survey results, it was revealed that Netflix saw around 3.6 million cancellations in the first three months of 2022. That’s a million more than the average of 2.5 million in each of the previous five quarters.
Additionally, the number of long-time Netflix subscribers who are canceling their service has hit an all-time high.
In each quarter leading up to 2022, subscribers who have been with Netflix for three or more years account for between 5 percent and 10 percent of cancellations. But in the first three months of 2022, 13 percent of the platform’s cancellations belonged to longtime subscribers.
So why is Netflix losing so many longtime subscribers?
There are several factors that have led to Netflix’s massive number of cancellations. First of all, the company keeps increasing the price of the service. The cheapest option right now is $9.99 per month. But if you want to watch in HD, you have to pay over $15.49 per month.
However, the company plans to introduce a cheaper, ad-supported tier in the near future. This tier is coming sometime towards the end of 2022 and could be more attractive to some long-term users who previously canceled their subscription due to the rising price.
Another major factor in cancellations is competition. Services like Disney+ and HBO Max continue to gain traction in the streaming space.
And those are just a few of the services that are starting to invade Netflix territory. Also, the content on Netflix has been a bit outdated lately. Some of his more popular shows, such as ozark, are on the way out without being replaced by similarly impactful content.
Netflix is still at the top of the streaming world with more than 200 million subscribers. But the platform needs to evolve with new content if it wants to hold this title. And, I don’t know, maybe not crack down on password sharing too much.
The next 12 months will be crucial with the new ad-supported tier and hopefully the introduction of some new content. I’m curious to see where Netflix is in terms of subscribers this time next year.
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