Sounds like some of you aren’t around to tell Netflix that you’re still watching. The streaming monolith just started to look a little less strong today, as the company appears to be hemorrhaging subscribers.
Through Netflix’s financial earnings released today (April 19), we learned that Netflix actually lost subscribers overall for the first quarter of 2022. In total, Netflix is now down 200,000 subscribers, its first loss in more than a decade according to CNBC. The one caveat on Netflix’s side is that its suspension of service in Russia pulled 700,000 subscribers, so the streaming service could have avoided an overall loss had things gone differently.
And apparently, things will only get worse in the second quarter. which runs from April to June. Even with much-hyped returns — Ozark season 4 part 2 (April 29), Stranger Things season 4 (beginning on May 27) and Umbrella Academy season 3 (June 22) — Netflix expects to lose a whopping 2 million subscribers before July.
Analysis: Netflix’s problems aren’t hiding
An increasingly-crowded war among the best streaming services was never going to help Netflix, with everyone else nipping at its heels. But competition is far from the only reason people likely canceled their subscriptions.
Here at Tom’s Guide, I obsessively blogged my story about how I canceled Netflix (because it dropped AMC’s Halt and Catch Fire) and came back months later (to get ready for Better Call Saul season 6), but the bigger story is clear for all Netflix subscribers to see.
Yet another Netflix price increase was announced at the start of 2022, bringing Standard Netflix (the 1080p one) up to $15.49 per month. This is the most popular version of Netflix and the most expensive subscription service (ad-free HBO Max is $14.99 per month).
That price hike, combined with inflation, puts subscribers in a position where they’ve got to reconsider their Netflix accounts. Even my parents are considering canceling Netflix.
But, take it from me, a Netflix subscriber: this company hasn’t gained much good faith with its seeming eagerness to cancel its own shows. GLOW season 3 ended in a way that made me and at least one of my colleagues excited for season 4. But Netflix canceled the series after it was renewed.
Interestingly enough, Netflix also noted that the dramatic increase of subscribers who were staying at home during the height of the Covid-19 pandemic “clouded the picture” and “significantly” increased its growth. Netflix also pointed out how Netflix account-sharing is likely messing with its profits, writing “in addition to our 222 [million] paying households, we estimate that Netflix is being shared with over 100 [million] additional households.” No wonder Netflix is trying to fight account-sharing, if a third of its users aren’t paying up.
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