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Netflix is experiencing a decline in subscribers despite reporting growth in the U.S. and Canada. The streaming giant is facing challenges globally due to rising subscription costs, increased competition from platforms like Disney+ and HBO Max, and a crackdown on password sharing. Additionally, changing viewing habits and content concerns have contributed to the decline. As Netflix navigates these challenges, it is implementing new strategies, including an ad-supported plan, to retain and attract users.
In Q2 2022, the streaming company lost nearly 1 million users globally. This was Netflix losing subscribers for the first time in a decade. The company ceased operations in Russia because of the Ukraine war and lost 700,000 subscribers in the process. The emergence of strong competitors like Disney and HBO Max as well as Amazon has also slowed growth.
Higher prices continue to be a leading reason for cancellations. Netflix has continuously increased subscription fees over the years. The rise in prices of different streaming platforms has made many users reconsider their subscriptions.
Netflix’s decision to keep a tight grip on password sharing has bred further contempt. Many people depended on shared accounts to save money, but the company has now introduced paid sharing, which has resulted in many subscribers cancelling.
Content concerns have also played a role. Some users think the platform’s original TV series is not as appealing as they used to be and the best-performing shows are not as promoted as they used to be. The cancellations of top-hit series have also been frustrating. On the other side, other platforms are still pouring money into popular franchises to captivate the audience.
The way people watch television these days has changed drastically. After the Covid pandemic, people have been spending less time streaming shows due to fewer restrictions to stay at home. This shift has greatly influenced the increase of subscribers. Millions of subscriptions are no longer there as people resumed work post-COVID.
To combat this issue, Netflix introduced a cheaper ad-supported plan. This plan is set to bring in people who are more inclined towards saving money. The firm is also investing in new original series from different categories.
Even after losing subscribers, Netflix continues to have a stronghold in the streaming business. The popularity of “Stranger Things” is one of the reasons why people continue watching it. The organization pays close attention to changes in the market and continues to strive to beat the other companies in the business.
