Why Netflix Is Losing Subscribers Like Crazy
Learn all the reasons behind why streaming behemoth Netflix is losing immense swaths of subscribers at record rates.
Streaming behemoth Netflix is currently experiencing some stormy weather. Following an immense loss of subscribers and a historic revenue plunge, the company proceeded to lay off well over 100 of its employees. These unprecedented circumstances for Netflix serve to beg the question as to why it is happening. Why is Netflix losing so many subscribers? The answer: For a multitude of reasons.
To understand why Netflix is losing subscribers, it’s first important to understand the overall scope of the situation in terms of just how many viewers they have lost. According to 9 to 5 Mac, in just the first three months of 2021 Netflix dropped 200,000 subscribers and is on track to lose approximately 2 million more during the current quarter. Perhaps more troubling than the fact that they are losing so many viewers is the fact that the number of loyal long-term viewers that they are losing is also increasing. A survey conducted by Antenna reveals that at present 13% of people who had been with the service for 3 years or more ended their subscriptions during the first quarter of 2021. Considering that subscriber losses in that category typically only makes up about 5%, that amounts to a staggering 8% increase.
One of the main things contributing to Netflix’s decline is the fact that the steaming giant now has more competition than ever. In recent years, more and more companies have entered the streaming space. These include major players like Disney and Apple with Disney+ and TV+ and even national networks like NBC with Peacock. Hence, since more people now have more options outside of Netflix, it stands to reason that Netflix was bound to lose viewers.
Furthermore, not only do people now have more options to turn to outside of Netflix to fulfill their streaming desires, They have a slew of cheaper options. Netflix’s basic plan starts at $9.99. However, if you have a 4K TV and multiple people using the account, the price jumps up pretty quickly. A 4K plan that allows up to 4 profiles, costs $19.99 a month. In contrast, Apple’s TV+ plan is only $4.99 per month with no upcharge for 4K viewing. Peacock even has a free tier. It’s easy to see why people looking to cut costs and save money would drop Netflix in favor of cheaper options. In fact, that is true now more than ever given that the United States is currently enduring one of the most intense periods of inflation on record.
Netflix is losing traction with its viewer base for reasons both in and out of its control. Market volatility is inevitable for every business and Netflix is feeling that now, perhaps, stronger than ever. Additionally, in a capitalist market, it was only a matter of time before worthy Netflix competitors surfaced. Netflix puts out some great content, sure, but so do a range of other streaming platforms and at cheaper price points. In order for Netflix to regain some ground, the streaming giant needs to take a hard look at where they are falling short as well as re-evaluate how it can better satisfy its viewers.
