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| Netflix loses more old subscribers |
According to a report by The Information, more and more former Netflix subscribers are canceling their subscriptions. Survey data shows that subscribers using the service for more than three years accounted for 13% of cancellations in the first quarter of 2022.
The report is based on data from analytics company Antenna, which collects data from 5 million Americans with anonymous shared streaming subscriptions.
The data showed that the number of cancellations totaled 3.6 million in the fourth quarter, from 2.5 million in the previous five quarters.
The data shows that only a small percentage of new users swell. This is another sign that Netflix is struggling to keep subscribers longer.
In the second quarter of 2021, 70% of participants had held the platform for less than a year, with 70% of cancellations. Old users made up 6%. According to the data, 60% of cancellations in the last quarter were from new subscribers.
Subscriber interest has declined due to the platform's choice of shows and movies, some of which can be found on other subscription services such as Hulu and Peacock.
Also, after all the price hikes over the years, Netflix subscriptions have become quite expensive compared to the cheaper ad-supported subscription plans for other services like Hulu, which costs $6.99 per month.
The broadcasting giant reported a loss of 200,000 subscribers in the first quarter of 2022, its first loss in more than a decade.
Additionally, Netflix expects to lose another 2 million subscribers in the second quarter of 2022. The company currently has 74.58 million users across the United States and Canada.
Netflix cancelations are increasing among former subscribers
Many factors can cause fluctuations in the number of Netflix subscribers. In March, the service suspended service in Russia due to the war with Ukraine. This caused him to lose about a million subscribers in the country.
Later, prices were also raised on all subscription levels. As a result, the basic plan was $9.99 a month (up from $8.99).
Its standard plan goes up to $15.49 per month (up from $13.99). The premium plan goes for $19.99 per month (starting at $17.99).
Over the next year, we may see some changes in Netflix. The platform has reportedly notified employees that it plans to launch a cheaper ad-supported program later this year.
The company's co-CEO, Reed Hastings, has not been shy about cracking down on password sharing.
The service is currently testing a feature that would allow subscribers to add sub-accounts for less than one person using the service outside their homes.
It also develops live broadcasts of comedy specials and other unrecorded content. It's trying to keep up with competitors like Disney Plus, which added 8 million new subscribers last quarter, has a live streaming feature, and is expanding ad-supported subscription.