More longtime Netflix subscribers are canceling their subscriptions, according to a report by The information. Survey data viewed by the outlet found that subscribers who have been using the service for more than three years accounted for 13 percent of cancellations in the first quarter of 2022.
The information says it got its data from Antenna, an analytics company that collects data from 5 million Americans who anonymously share their streaming subscriptions. The data showed a total of 3.6 million people were affected by cancellations in the most recent quarter, up from the 2.5 million cancellations over the past five quarters.
As the number of cancellations has increased overall, The information reports that new users make up a smaller proportion of them — another indicator that Netflix is struggling to retain users for long periods of time. In Q2 2021, respondents who had subscribed to the platform for less than a year accounted for 70 percent of cancellations, while long-time subscribers accounted for 6 percent. 60 percent of cancellations were made by new subscribers in the last quarter.
Here, at The edge, some of my colleagues who have been with Netflix for years have already canceled their Netflix subscriptions or are at least thinking about it. While I’m (admittedly) spoiled and can nibble a shared Netflix subscription, I don’t watch it as much anymore due to its selection of shows and movies, some of which I can just as easily find on other services I subscribe to, like Hulu and Peacock. Not to mention that it was cancelled Archive 81 — and yes, I’m still crazy about it — this was actually one of the few shows I enjoyed watching on Netflix.
Also, as our news editor Richard Lawler aptly notes, after all the price increases over the years, Netflix’s price has “risen beyond the standard subscription range and slightly outside of the ‘forgot I had it’ range” compared to cheaper ones , ad-supported plans from other services like Hulu that cost as little as $6.99/month.
Netflix got off to a rocky start in 2022. In the first quarter, the streaming giant reported losing 200,000 subscribers, This was the first time subscribers had been lost in over 10 years. Additionally, Netflix expects to lose another 2 million subscribers in the second quarter of 2022. It currently stands at a total of 74.58 million subscribers across the US and Canada.
A number of factors contribute to Netflix’s fluctuating subscriber base. In March, Netflix suspended its services in Russia over its war against Ukraine, blocking around a million subscribers in the country. Netflix later increased the price of all of its subscription tiers, bringing its Basic plan to $9.99/month (from $8.99), its Standard plan to $15.49/month (from $13.99), and its Premium plan $19.99/mo (up from $17.99).
We’ll likely see a slew of changes from Netflix over the next year, as the platform has reportedly told staff it plans to roll out a cheaper, ad-supported plan sometime this year. Netflix co-CEO Reed Hastings hasn’t been shy about cracking down on password sharing either.
The service is currently testing a feature in Chile, Costa Rica and Peru that would allow subscribers to add “sub-accounts” for anyone using the service outside of their household at a lower price. Netflix is also working on live streaming comedy specials and other unscripted content. That means it could do so soon if it wants to keep up with the likes of Disney Plus, which added 8 million new subscribers last quarter and already has both a live streaming feature and an ad-supported tier that has been confirmed to be growing she is in the works .