Netflix is losing subscribers for the first time in a decade. While sharing its quarterly earnings, the company announced it had lost 200,000 subscribers in the first three months of 2022.
This is expected to be just the tip of the iceberg. Netflix expects to see over 2 million users leave in the second quarter of this year. Something it blames you, the user, for. Justified or sheer nonsense?
Netflix loses subscribers ‘because of you’
Since the big price hike in the United States and Canada, things have not been going well for Netflix. The streaming service is losing a lot of subscribers and is seeing a trend in that area. The company is preparing for the worst and expects to lose millions of customers in the coming months.
Netflix is cautiously putting its hand in its own mouth, saying that higher prices are part of the problem. Though the biggest cause, it says, lies with the users themselves. The streaming service revealed that there are currently some 100 million households that share their accounts with other consumers. Something that makes it “very difficult to grow in certain markets,” Netflix revealed.
So the reason the company is losing so many subscribers is indirectly on you, provided you share your account with others. But in my opinion, that’s not the problem Netflix is facing.
The streaming service’s real problem
Yes, there are many people who share an account with friends and family. I understand, of course, that this is annoying for Netflix, although I do think that the company should take a good look at the reason behind this decision. There has been quite a bit of change in streaming land over the years, so more and more people are reaching for such measures.
For example, Netflix is facing a lot of competition. The streaming service is seeing HBO Max, Disney+, and Amazon Prime Video rise more and more, while its own popularity is starting to decline. Something that has to do with the prices Netflix charges. Competitors offer an interesting selection at a much lower price, while also giving consumers the best possible quality.
For example, where at Netflix you pay €15.99 per month to watch content in 4K, at HBO Max that option is included for €7.99. At Disney+, consumers get that option for as little as €8.99 per month. With that said, the offerings of the latter two are also starting to become more attractive in contrast to what Netflix has to offer.
A new service in the Netherlands (Image: HBO Max)
Those who don’t feel like paying full price, they make sure they can share the cost with someone. What Netflix doesn’t understand is that by cracking down on this kind of practice, you’re not going to get these people back as full-paying subscribers. So the problem lies with supply and price, not consumer choice.
Netflix looks at cheaper subscription
The fact that Netflix is not assessing its current problems well can be seen in the announcement it made during its conversation with investors. The streaming service wants to make its offerings more accessible and is introducing a cheaper subscription within two years. Exactly how much it will cost is not known, but that the company will work with ads is.
So consumers in this situation are given a very easy choice. Either you get access to the HD offerings of Netflix and have to watch commercials between your movies and series, or for the same money you watch the offerings of HBO Max without commercials (in 4K resolution). A choice that, as far as I’m concerned, is incredibly easy to make.