Netflix is losing a ton of long-time subscribers
13 percent of early 2022 cancellations came from long-term subscribers.
Netflix had a rough start to the beginning of 2022 and the platform is losing tons of long-time subscribers. Research shows that 13 percent of Netflix’s first-quarter cancellations came from users who had been on the platform for three years or more.
This research comes from Antenna and was reported on by The Information. As part of the survey’s findings, it was revealed that Netflix incurred around 3.6 million cancellations in the first three months of 2022. That’s a million more than the average of 2.5 million in each of the previous five quarters.
Additionally, the number of long-term Netflix subscribers who are canceling their service has reached an all-time high.
In every quarter prior to 2022, subscribers who had been with Netflix for three or more years make up between 5 and 10 percent of cancellations. But the first three months of 2022 saw 13 percent of the platform’s cancellations belong to long-term subscribers.
So why is Netflix losing so many long-term subscribers?
There are several factors that have led to the huge amount of cancellations that Netflix has been incurring. First of all, the company continues to increase the service’s price. The current cheapest option is $9.99 per month. But if you want to watch in HD, you’ll have to fork over $15.49 per month.
The company plans to launch a cheaper, ad-supported tier in the near future, however. That tier is coming sometime near the end of 2022 and could be more appealing to some long-term users who had previously canceled their subscription due to its increasing price.
Another major factor for cancellations is competition. Services like Disney+ and HBO Max continue to gain traction in the streaming space.
And those are just a couple of the services starting to encroach on Netflix’s territory. Additionally, content has been a little stale on Netflix as of late. Several of its more popular shows, like Ozark, are on their way out without similarly impactful content replacing them.
Netflix is still on top in the streaming world, with more than 200 million subscribers. But the platform needs to evolve with new content if it wants to hold that title. And, I don’t know, maybe not crack down so hard on password sharing.
The next 12 months will be crucial, with the new ad-supported tier and, hopefully, the launch of some new content. I’ll be curious to see where Netflix stands in terms of subscribers at this time next year.
- Netflix says its ad-supported tier could launch as early as October
- Xbox is working on a Roku-like device for game streaming
- HBO Max and Discovery+ will become one streaming service
- Disney+ is getting a cheaper ad-supported tier