Are you still watching? Earlier this week, Netflix announced that it had dropped 200,000 subscribers in its first quarter — a huge plunge for a streaming service that has been putting up wins for years. Some of the decline can be attributed to pulling out of Russia following the Ukraine invasion, but the bad news for the streamer didn’t stop there. Shares fell off a cliff to record lows after Netflix announced plans to curtail password sharing on the app, leading to a $50 billion loss. That’s a company record.
What’s more, Netflix is projecting to lose another 2 million subscribers by the summer.
The company is chalking up its sorrows to several external factors, like an increase in competitors and natural attrition after a crackdown on households “borrowing” someone else’s passwords. But others noted that Netflix has been steadily raising their prices for years, and some subscribers may have finally decided enough is enough. Netflix is planning to patch the leaks by rolling out cheaper, ad-supported tiers, but even that may not address core issues with their brand.
Viewers have expressed frustration with Netflix’s original content model, which rarely extends new shows beyond a season or two. Shows like GLOW or Sense8 didn’t have the cultural impact of Game of Thrones, but did have a large cult following that got frustrated when Netflix pulled the plug. Considering other streamers like HBOMax and Hulu have proven far more willing to keep mid-tier success stories going than Netflix has, viewers may very reasonably be switching to them.
Rumors of Netflix’s demise are a little premature. It’s still the global leading streamer out there. But the current forecast isn’t good and while recent hits like Squid Game and the upcoming return of Stranger Things might be a silver lining, it’s gonna have to face the music sooner or later.
