This is the same quarter that Netflix reported losing subscribers for the first time in a decade and expecting more in the coming months. There are plenty of reasons for Netflix’s downfall, with competition being one of the main ones.
Netflix is Losing Loyal Fans
After reporting a fall in subscriber count for the first time in a decade of operation, Netflix receives yet another blow from a third-party analytics firm – that said the platform is losing its most loyal users due to various reasons. Coming from Antenna (via The Information), an analytics firm that anonymously gathers data about streaming habits from millions of American homes, Netflix has lost 13% of its loyal subscribers in the last quarter. The firm tagged loyal fans as those who stayed with Netflix for more than three years. Also, the report noted that the number of Netflix account cancellations has risen over the past two years, as the OTT platform is failing to retain customers for a longer time. And the reasons could be many. One of the major ones includes the stagnation of the OTT industry, as Netflix may have reached the peak of its subscribers, who have a plethora of such subscriptions to pay. The competition, on the other hand, is a big deal too. The rise of rivals OTTs like Disney+, Discovery+, Paramount+, HBO Max, etc have eaten up the Netflix’s lion’s share and been engaging their viewers with good content. This led most users to feel that Netflix’s content is not a “must-see” type, thus skipping it. Also, these rivals offering a cheap ad-tier version take a big dig at Netflix, which now forces the company to explore ads within its platform! Netflix confirmed this and may roll out such plans later this year.
