For an entire decade, Netflix was the reigning digital platform, but now the numbers are not looking good for the company. It has lost over 2 million subscribers in its first quarter and Netflix is expected to lose, even more, around 200,000 subscribers. Even more alarming is Netflix’s stock value which has plummeted to 25%. In the history of the company, it was only in 2011 when the company had lost a chunk of subscribers because it had made a move to hike the prices.
Recent data revealed the amount of competition that the streamer is facing at the moment is insane. But on the flip side, its TV time has increased to 6.4%. The question is how long can the streamer keep these numbers?
Here’s why Netflix will lose more subscribers
Too many competition
Although the streamer was the pioneer of streaming services, other platforms are catching up. People have too many options now from Hulu, Amazon, Apple +, HBO Max, etc. A lot of Netflix’s subscribers have migrated to these platforms. They are also producing high-quality original content that the streamer was known for.
Production houses pulling back shows from the platform
Not only that, but they took back their shows to stream them on their services once they realized the potential of the market. Friends has moved to HBO Max, The Office is on Peacock and all the Marvel shows are on Disney+. So the streamer has lost a lot of valuable content from its library.
Crackdown on password sharing and ads
The company is no longer turning a blind eye to password sharing. Co-CEO Reed Hastings has just recently revealed that it would introduce an ad-supported cheaper version of the streamer. In doing so, it risks driving away subscribers who preferred the accessibility and uninterrupted viewing.
What do these dwindling numbers mean for the platform?
Obviously, these numbers indicate that Netflix will continue to lose subscribers. It has to produce or acquire some really great content to retain the subscribers. For a data-driven company, it had already started taking steps from last year. It had ventured into video games. But despite the setback, it would still have more subscribers than its rivals – 219 million to be exact.