Netflix saw it coming earlier this year but seeing the numbers revealed is a whole other story. The company has confirmed that it lost around 1 million subscribers between March and the end of June this year. The subscriber count dropped by 1 million worldwide and the US and Canada contributed an additional 1.28 million to that figure.
Originally, Netflix predicted that the company would see around 2 million subscribers leave the service worldwide by the end of June 2022. However, while that number was high, the worldwide figure was actually half of that. Still, 2.2 million subscribers is a big number and considering Netflix had one of its biggest months of the year with Stranger Things 4 and The Umbrella Academy. Even these two blockbuster shows weren’t enough to keep people paying.
Netflix reports that in the US and Canada alone, the number of users leaving the service in the past four months has doubled from 600,000 in Q1. While the loss of subscribers is concerning, the company still has some impressive figures. They boast 73 million subscribers in the US and Canada and 220 million subscribers worldwide.
The issue Netflix is having right now is its price tag. Netflix is expensive. The streaming service also has the worst tier options available for users. Most users who want to stream 4K content have to fork out R199 for the highest tier even if they are only one user streaming on one device at a time. There’s no cheaper 4K option available.
Netflix has a plan for this and it is their new ad-supported membership. The company plans on rolling out a low-cost subscription that includes ads early next year. The company is also positive that subscriber growth will increase in the months ahead and they won’t report another loss of subscribers this year.
Even with the drop in active members, Netflix is investing heavily in its platform. The company recently purchased the animation studio behind The LEGO Movie, Animal Logic. It also announced the second season of Squid Game is in the works. During Netflix Geek Week, the company also showcased dozens of new shows and movies headed to the platform in the months ahead.
Source: Netflix Earnings