Netflix losing subscribers, yes you heard it right. It has lost 10 million subscribers in the span of three months. Netflix’s second-quarter earnings report revealed the OTT platform’s downfall. Just in April, it lost 200,000 subscribers and the number doesn’t seem to stop losing. This is a huge blow to the platform’s 25 years old history.
The downfall has to do with Netflix increasing the prices of the plans. The subscriber losses reported on Tuesday were the biggest in the firm’s history. The highest cancellations were seen in the US and Canada in the past three months, followed by Europe.
The company’s share prices have also gone down more than 60% as compared to last year. “Netflix’s subscriber loss was expected but it remains a sore point for a company that is wholly dependent on subscription revenue from consumers,” said Insider Intelligence analyst Ross Benes.
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He further added, “Netflix is still the leader in video streaming but unless it finds more franchises that resonate widely, it will eventually struggle to stay ahead of competitors that are after its crown.” The platform is still the biggest one against Amazon Prime Video, Disney+, and other OTT platforms.
The subscriber downfall is also related to the firm charging extra money for shared accounts in South and Central America. Slowly, the trend might move to other parts of the world too.
What’s Next For Netflix?
The company said it had selected Microsoft as its global advertising technology and sales partner in order to bring a “lower priced ad-supported subscription plan”. It also lost 700,000 subscribers from Russia as it suspended its service in the conflict zone country. With Microsoft’s partnership, the company is planning to infuse ads into its content. It will reduce the subscription price and might help to gain new subscribers.
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Netflix’s chief operating officer, Mr.Greg Peters said, “Our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers.”
The streaming platform is also seeking new lines of revenue and new audiences such as video games. Currently, the massive hype and appreciation for the Stranger Things series have helped the OTT to be at the top spot. Also, the second season of the enthrallingly popular Squid Game is also on its way, reserving a way for Netflix to lure in more members.
The company has been blaming the viewers for sharing their account passwords with multiple people. It is also trying to charge extra money out of the 100 million households that have shared passwords. Well, this might be a hit or a miss when already, the firm is losing subscribers.
About Netflix
Netflix is an American streaming and production company which got launched in August 1997. Initially started as a mail-based rental company, the firm started streaming services in 2007. Now, the OTT platform has been providing streaming services under subscription worldwide except in Mainland China, Syria, Russia, and North Korea. Through distribution deals, the platform offers a library of series, dramas, documentaries, movies, etc. It also owns its production house known as ‘Netflix Originals’.
The most popular streaming platform can be accessed via mobile apps on Android and iOS, tablets, digital media payers, smart TVs, set-up boxes, its website, etc. It is running on a subscription plan which varies according to the content quality such as HDR 10, Full HD, HD, SD, etc.
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So that was all about Netflix losing subscribers. What do you think about it? Do you have a Netflix account? Do tell us about your experience with the OTT platform and also write us your thoughts and opinions in the comment section below.
