Survey reveals Netflix is losing more long-term subscribers
Users subscribed to Netflix service for more than three years accounted for 13 percent of total cancellations.
According to a report by The Information, more long-term Netflix subscribers are cancelling their subscriptions. Survey data seen by the outlet revealed that users who have been on the subscription for more than three years accounted for 13 percent of cancellations in the first quarter of 2022.
The Information claims it got its data from Antenna, an analytics firm that collects data where 5 million Americans share their streaming subscriptions anonymously. The data showed that general cancellations affected 3.6 million people last quarter, increasing the 2.5 million cancellations over the previous five quarters.
As the number of cancellations has generally increased, The Information reports that new users make up a smaller share of them, another indicator that Netflix is struggling to retain users for more extended periods. In the 2021 second quarter, people surveyed who subscribed to the platform for less than a year accounted for 70 percent of cancellations, while long-term subscribers accounted for six percent. 60 percent of cancellations were made by new subscribers last quarter. Unfortunately, it cancelled Archive 81, which was one of the few shows I enjoyed watching on Netflix.
After all the rate hikes over the years, Netflix's price has passed the default subscription range and is easily out of the 'forget about it' range.
Netflix has started 2022 raw. In the first quarter, Netflix reported losing 200,000 subscribers, marking the first time it has lost subscribers in more than 10 years. In addition, Netflix expects to lose another 2 million more subscribers in the second quarter of 2022. It currently has a total of 74.58 million subscribers in the US and Canada.
Several factors are contributing to Netflix's faltering subscriber count. First, in March, Netflix suspended its services in Russia due to its war in Ukraine, cutting around a million subscribers. Netflix then increased the price on all of its subscription tiers, raising its basic plan to $9.99/month (from $8.99), its standard plan to $15.49/month (from $13.99), and its premium tier to $19.99/month from $17.99).
We're likely to see several changes from Netflix over the next year, as the platform reportedly told employees it plans to launch a cheaper, ad-supported plan sometime this year. Netflix co-CEO Reed Hastings has also not been shy about cracking down on password sharing.
The service is presently testing a feature in Chile, Costa Rica and Peru that will allow subscribers to add "sub-accounts" for anyone using the service outside their homes at a lower price. Netflix is also working on live streaming comedy specials and other unscripted content. You may want to do it soon if you want to keep up with Disney Plus added 8 million new subscribers last quarter and already has a live streaming feature and an ad-supported tier confirmed to be in the works.