Netflix has seen quite a plunge in its North American subscriber base. It recently announced that Netflix lost half a million customers. As the world’s colossus and most admired streaming platform, even Netflix has been feeling the heat of the pandemic. The moment, Netflix announced that it would be removing Friends, The Office, and many other popular shows from its platform. Many users are not satisfied with this decision and have quit the service in favor of other streaming channels. Despite having a list of other television shows to offer to citizens abroad, Netflix is still losing customers as they continue to delete numerous archives.
Netflix has seen a major drop in performance in the past decade. Everything was going well for Netflix, which at one point acted as the world’s leading video streaming service and soon had an answer for video games. Yet with more companies broadcasting their own programming alongside high-profile programs leaving it, many viewers are looking to drop Netflix altogether.
Why Netflix lost half a million consumers in Q2?
If you look at the current market, you can find multiple options Amazon Prime, Disney Plus, HBO Max, Paramount Plus, and even Apple TV. Most of their user base is all coming in from Netflix and this is hurting it so bad. There are multiple reasons why people want to leave Netflix and find an alternative.
- They don’t find good content there anymore.
- Most popular shows left the platform to different streaming sites. (Friends, Office etc.)
- People subscribed to Netflix are willing to try new streaming services.
- Increasing prices, while competitors are offering a year of free services to try.
It will be hard for Netflix to bring back the users that left the platform, and eventually, their only option is to bring in new users. To bring new users to the platform at this point in time is really a challenge to any streaming service, including Netflix.
Yet, Netflix continues to enjoy the benefits of being a global leader, its gains and losses in the second financial quarter show that the streaming giant lost 0.43 million subscribers in the United States and Canada. Though Netflix has summed up this loss as some lumpiness due to the pandemic. Premium subscription, can cost $17.99 (£13.99) per month, which left the subscribers who were affected by the pandemic, and people, in general, did question if they would want to continue paying the subscription fee.
Although Netflix lost half a million subscribers, the company posted $7.3 billion in revenue for the second quarter of 2021 and has exceeded expectations with 1.54 million new subscribers in one month (+1.02%). It has also crossed the original subscriber estimates (managed to add 1.54 million subscribers after previously estimating 1.00 million new subscribers for the financial period.)
Over the past few years, newly formed streaming services have come close to reaching Netflix’s throne in light of its global Covid-19 pandemic. And while this has been far from financially profitable for many companies, Netflix to some extent found success during all these lockdown periods that are still happening across the world. Leading entertainment streaming apps, such as Disney and Amazon, have been making a huge impact on the market with their popular content. This might also be playing a factor in Netflix’s recently declining numbers.
Netflix seems undaunted, as it’s predicting 3.50 million new subscribers in its third quarter. Throughout the Covid-19 pandemic, a subscription to Netflix might be considered an unaffordable luxury for some. The issue of content is also swaying against them, as some Netflix regions offering far fewer interesting titles than others. If you liked this article (or if it helped at all), please leave us a comment below or share it with friends, so that they can be up-to-date too.