Netflix should continue to lose subscribers. According to a study, a quarter of US customers want to cancel their subscription. Subscribers point to various factors, including rising prices.
Reviews.org, a nonprofit company that specializes in testing products and services, has surveyed 1,000 Americans about their streaming habits. According to the survey, the average person subscribes to four different VOD services.
Unsurprisingly, Netflix is the most popular streaming service in the United States. 77% of respondents subscribed to a Netflix subscription. It is also the most watched platform in US homes, ahead of HBO Max and Disney+.
“70% of respondents watch Netflix more often, meaning the service is used more than any other streaming service”underlines the Reviews.org report.
Despite its huge popularity, Netflix is experiencing an erosion of its customer base. During the second quarter of the year, the service was abandoned by 970,000 subscribers. During the previous quarter, more than 200,000 customers worldwide had already canceled their subscription. From the start of, Therefore, 1.2 million subscribers have given up the platform.
According to the Reviews.org report, the exodus of Netflix subscribers is set to last. One in four subscribers plan to cancel their subscription by the end of the year. In other words, Netflix could soon be deprived of 25% of its American clientele.
Also read: Netflix is counting on the death of TV channels to fuel its growth
Repeated price increases
More than 40% of subscribers planning to unsubscribe believe that the service has become too expensive. In recent years, Netflix has gradually increased its prices. In France, the catalog is already available at the starting price of €8.99 per month. The most complete offer, with 4K and several screens at the same time, is now priced at €17.99 per month. A similar increase applied in other countries, including the United States. Netflix attributes this umpteenth increase to account swapping, a widespread practice that would weigh heavily on its revenue.
Reviews.org’s finding is shared by analysts at Attest, a consumer research firm, reports Forbes. The firm’s CEO, Jeremy King, says the underwriters are ” currently very sensitive » to price increases, even the smallest ones. 19% of Netflix subscribers who plan to cancel their package point the finger inflation and the general increase in the cost of living.
“This could explain the subsequent drop in viewership on the platform last quarter, especially as inflationary pressures have further reduced the purchasing power and income of Americans.”explains the leader of Attest.
Please note that Netflix remains the most expensive VOD service of the American market. As Reviews.org points out, the average monthly cost of a subscription in the United States is $15.15. For its part, HBO Max costs an average of $12.49, compared to $7.99 for Disney+.
To respond to its hemorrhaging subscriber base, Netflix has planned to release an affordable ad-supported subscription. This offer would be offered at a monthly price between 7 and 9 dollars. So it would be a bit cheaper than standard plan current Netflix, priced at $9.99 in the US. Please note that this subscription will only give you without access to the entire Netflix catalog. In addition, some functions, such as offline download of movies and series, would not be offered. The plan would be implemented by the end of the year in certain countries.
However, price is not the only factor causing subscribers to jump ship. In fact, 21% of dropouts regret not being able to find the program they are looking for on the platform. Lately, many contents have disappeared from the catalog. Warner Bros effectively repatriates a plethora of movies and series to enrich its own service. Cult programs, such as Fight Club, A Prince in New York, Man of Steel or The Hobbit trilogy are also preparing to leave the catalog on September 30.
The scarcity of new Netflix productions has also contributed to the disenchantment of subscribers. In fact, the health crisis has forced the VOD giant to postpone the shooting of several expected productions. This is particularly the case for Stranger Things, whose season 4 was not released until 2022, that is, three years after season 3. In fact, the catalog was not sufficiently supplied for several months to support the growth.
The VOD market, a sector that has become very competitive
Of course, Netflix also suffers from the rise of competition. As Netflix continues to lose customers, a service like Disney+ is attracting more and more subscribers. The platform of the giant Disney recently surpassed the milestone of 137 million members worldwide, despite the announcement of a future price increase.
For Jeremy King, the wave of casualties affecting the VOD leader also indicates ” the potential end of Netflix’s monopoly in the streaming industrygram ». In this context, alternative services, such as Disney +, HBO Max or even Hulu, could find a more substantial place.
“The competition has never been so fierce”stresses Jeremy King.
Faced with this fierce competition, Bog Iger, former CEO of Disney, is convinced that not all platforms will succeed and, in his opinion, there are currently too many players on the market. Considering that ” Netflix will continue to thrive.” despite your current concerns, it prophesies the demise of certain competitors in the years to come.