Streaming juggernaut Netflix has been looking for ways to broaden its reach and increase its sales, with initiatives such as adding an ad-supported plan and launching more well-known titles with its nascent gaming services.
Since the company began tracking paid net subscriber additions in 2014, Netflix’s user base has been steadily increasing for more than ten years. In the first two quarters of 2022, Netflix reported a decline in net subscriber additions for the first time in years.
The loss was lower than anticipated, at about one million subscribers, despite the prediction indicating that the streaming mogul will lose another two million monthly active users in the second quarter. This information is confirmed by web statistics firm Statista.
Netflix Subscribers Plan to Leave the Streaming Site
Despite a staggering 85% increase in net profit in 2021, the California-based streaming company fell short in another area. According to a recent survey conducted by Reviews, 25% of Netflix subscribers expressed a desire to discontinue their cloud-based streaming subscription.
The same survey tells us that over 1.2 million Netflix subscribers have already left the streaming service in the first two quarters of 2022. Most of these subscribers left because of costly subscription pricing. A portion of those polled who stated their intention to leave Netflix mentioned that they would do so because their favorite shows are no longer available through the site. Some participants explained that they are increasingly using other streaming services.
The survey asked 1000 Americans about their streaming preferences, and it turns out that Netflix is still the most popular streaming site among this demographic. According to 9to5Mac, Netflix is still the most popular streaming service, with nearly four out of every five Americans currently subscribed to the platform.
Furthermore, 70% say they use Netflix the most, with 10% using HBO Max and 6% using Disney Plus. Despite these concerning figures, Netflix remains the largest streaming site in terms of subscriber share. This information is reflected in the same survey conducted by Reviews. AppleTV, one of its competitors, trails the said rank with only 22% of the total subscriber market share.
Netflix Is Currently the Most Costly Streaming Site
In-depth statistics into the streaming sites’ important data show that Netflix has the highest average plan cost of $15.15. The recent economic downturn may have played a role in Netflix’s observed drop, as many subscribers may decide to cancel subscriptions to save money.
Netflix executives confirmed earlier this September that a more affordable subscription will be available on the streaming service. They intend to accomplish this through the creation of a new ad-supported tier, which will benefit both ad buyers and Netflix itself. According to previous reports, the aforementioned new plan will be implemented in late 2022.