Longer-term Netflix subscribers are canceling their subscriptions, according to a report by Information. Survey data viewed by the outlet revealed that subscribers to the service for more than three years accounted for 13% of cancellations in the first quarter of 2022.
Information says it got its data from Antenna, an analytics company that collects data from 5 million Americans who share their streaming subscriptions anonymously. The data showed that overall cancellations affected 3.6 million people last quarter, up from 2.5 million cancellations over the past five quarters.
As the number of global cancellations has increased, Information reports that new users make up a smaller share — another indicator that Netflix is struggling to retain users for longer periods of time. In Q2 2021, respondents who had subscribed to the platform for less than a year accounted for 70% of cancellations, while long-term subscribers accounted for 6%. 60% of cancellations were made by new subscribers in the last quarter.
Here has The edge, a number of my colleagues who have worked with Netflix for years have already given up their Netflix subscription or are at least considering doing so. While I’m (admittedly) spoiled and can enjoy a shared Netflix subscription, I don’t find myself watching it as much anymore due to its selection of shows and movies, some of which I can just as easily find. on other services I subscribe to, like Hulu and Peacock. Not to mention that he canceled Archives 81 — and yes, I’m still mad about it — which was actually one of the few shows I enjoyed watching on Netflix.
Plus, as our editor Richard Lawler rightly points out, after all the rate hikes over the years, Netflix’s “price is out of the default subscription range, and it’s easily out of the range “forget I even had it””, in comparison to cheaper, ad-supported plans from other services like Hulu, which cost just $6.99/month.
Netflix started 2022 hard. In the first quarter, the streaming giant announced that it had lost 200,000 subscribers, marking the first time it had lost subscribers in over 10 years. On top of that, Netflix expects to lose another 2 million subscribers in the second quarter of 2022. It currently has a total of 74.58 million subscribers in the United States and Canada.
A number of factors contribute to Netflix’s faltering subscriber count. In March, Netflix suspended services in Russia due to its war on Ukraine, cutting off around one million subscribers in the country. Netflix then increased the price of all of its subscription tiers, bringing its basic plan to $9.99/month (from $8.99), its standard plan to $15.49/month (from $13.99) and its premium tier at $19.99/month (from $17.99).
We’re likely to see a number of changes from Netflix over the next year, as the platform has reportedly announced to employees that it plans to launch a cheaper, ad-supported plan later this year. Netflix co-CEO Reed Hastings hasn’t been shy about cracking down on password sharing either.
The service is currently testing a feature in Chile, Costa Rica and Peru that will allow subscribers to add “sub-accounts” for anyone using the service outside of their household at a lower price. Netflix is also working on livestreaming comedy specials and other unscripted content. That said, it might want to do it soon if it wants to keep up with Disney Plus, which added 8 million new subscribers last quarter and already has both live-streaming functionality and a tier. ad-supported confirmed ongoing. .