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Monday, February 26, 2024

The painful truth about Netflix. The latest report is worse than thought

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Netflix’s latest quarterly report showed the platform losing users for the first time in a decade. The latest study reveals an even bleaker trend.

Of course, Netflix users have always turned down the service, but there have always been more who have joined the platform. In the first three months of 2022, Netflix lost more users than it gained new ones for the first time in a decade. The decrease was estimated at 200 thousand. users.

‘Old’ users leave Netflix

The latest report from analytics firm Antenna shows there’s another trend that should worry Netflix bosses even more. Thirteen percent of users who opted out of the service used it more than three years ago. This trend is growing every year. In 2020, it was 10 percent. and in 2019, only half of that, i.e. 5 percent.

This trend may be partly due to rising inflation, which is forcing users to unsubscribe from services.

Another problem is the growing number of VOD services. Netflix, which used to be the leader in this entertainment space and the only player, now has to face competition from Amazon Prime Video, Hulu, Disney Plus, HBO GO, Apple TV and other film and TV companies that are preparing their platforms.

This is bad news for Netflix. Any subscription-based service must both attract new users and retain existing users.

To fight for users, Netflix has announced several changes that should go into effect later this year. Both are debatable. The first change is to offer a new type of subscription that will be cheaper than the existing ones, but will include ads. Concerns about this idea stem from the fact that after the launch of an ad-supported offering, Netflix may want to raise prices for ad-free offerings.

Netflix’s second idea to increase subscribers is to reduce the process of sharing accounts between users who do not live in the same household.

Collected: Boleslav Brechko
Source: WPROST.pl

Source: Wprost

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