By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Independent News ExpressIndependent News Express
  • Home
  • International
    InternationalShow More
    United Nations
    4th International Conference On Financing For Development Delivers Renewed Hope And Action For Sustainable Development
    3 months ago
    The African Development Bank and the United Nations Human Settlements Programme (UN-Habitat) scale up drive for sustainable urbanization in Africa
    AfDB, UN-Habitat Scale Up Drive For Sustainable Urbanisation In Africa
    3 months ago
    UN
    North Africa: Green Climate Fund Approves Record $300m For FAO-designed Projects In Papua New Guinea, Saint Lucia, The Sahel
    3 months ago
    UNICEF
    How Wars Across Middle East, North Africa Affecting Children – UNICEF
    3 months ago
    UNDP
    UN Development Programme Welcomes Historic Deal On Sustainable Development Even Amidst Global Turmoil
    3 months ago
  • Africa
    Africa
    Show More
    Top News
    Africa Leaders Summit: US To Strengthening Partnerships To Meet Shared Priorities
    3 years ago
    President Ruto Rallies Kenyans To Move Nation Forward
    3 years ago
    Tanzania: United Nations Steps Up Efforts To Build Climate Resilience
    2 years ago
    Latest News
     South Africa’s Think 20: Experts Address How Africa Can Bridge Digital Divide And Achieving Financial Inclusion
    1 week ago
    U.S. Africa Command Commander Visits West Africa, Underscores Partnership In Addressing Evolving Terrorism Threat
    2 weeks ago
    West Africa Regional Preparatory Workshop For COP30 On Climate Change Opens In Dakar
    2 weeks ago
    Systemic Racism Against Africans And People Of African Descent In Criminal Justice Systems Is Pervasive
    2 weeks ago
  • Corporate News
    • Media Outreach
  • Politics
    Politics
    Show More
    Top News
    Voters In Katsina Vow To Dump Buhairi, APC
    3 years ago
    My Son Must Win, Ondo State’s King Threatens His People
    3 years ago
    I Will Not Disappoint My Constituents, Dekor Reassures Ogoni People
    2 years ago
    Latest News
    EU, ADC Parley: Calls for Electoral Reforms To Guarantee Free, Fair, Credible Polls In Nigeria
    4 days ago
    NSC Chairman To Engage With Youth And Sports Stakeholders At The Nest Centre
    2 months ago
    Edo District Bye-election: SDP Candidate, Hon. Isidahomhen Promises To Pursue Best Interest Of Esanland 
    2 months ago
    PHOTOS: Vinod Obasa Takes Oath Of Office
    2 months ago
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
    News
    Show More
    Top News
    Ondo Governor, Akeredolu Begins Construction Of First Flyover In Akure
    2 years ago
    Celebration Of Life: Reverend Adewumi Jegede Of Later House Of God Assembly Buried Amid Pomp
    1 year ago
    Pa Abdulfatah Amoo Ayanwale
    Pa Ayanwale Dies At 76, Fidau Prayers Holds 8 August
    2 years ago
    Latest News
    Anambra Traditional Ruler For Burial 9 October
    5 days ago
    Lagos Hosts Eko Skills Development Initiative For Youths
    7 days ago
    October 1: Nationhood Must Translate Into Better Living Conditions For Nigerians, CAPPA Tells FG
    1 week ago
    EX-APC Chairman Sad Over Bandit Killings In Oke-Ode And Other Parts Of Kwara 
    1 week ago
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
    Entertainment
    Show More
    Top News
    Big Brother Titans Premieres January 15
    3 years ago
    BB Titans
    BBTitans: Who Walks Away with 100,000 Dollars?
    3 years ago
    My Most Romantic Memory Ever – Shakira 
    2 years ago
    Latest News
    GOtv Stream vs. Traditional TV: Why Viewers Are Loving the Flexibility
    2 weeks ago
    Securing Africa’s Digital Future: Entertainment in Safe Hands
    2 weeks ago
    BBNaija S10: Joanna, Mide, and Isabella Clash as Denari and Tracy Exit the House
    3 weeks ago
    Akamai Adaptive Media Player 2: Bitmovin And Akamai Set New Streaming Standard
    4 weeks ago
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
    Lifestyle
    Show More
    Top News
    NCC, NICO To Leverage Telecom Channels To Promote Nigerian Cultural Heritage
    1 year ago
    LENT 2023: Nigerians Knocking On Heaven’s Door By Bishop Emmanuel Badejo
    3 years ago
    Happiness
    Eight Ways To Stay Happier In 2025, According To Science
    9 months ago
    Latest News
    Ambassador Raffy Bello Greets Imperial Majesty, Ooni Enitan-Ogunwusi, As Olojo Festival Begins In Ile-Ife
    2 weeks ago
    Preserving African Culture: Polaris Bank , Chivita, And Danone Support CIKDAS’ Youth Literary Initiative
    1 month ago
    Nigeria, Switzerland Takes Major Steps Towards Repatriation Of Artifacts And Cultural Cooperation
    1 month ago
    Archbishop Ugorji Hails St. Helen’s Choir As One of the Best Choirs in Owerri Archdiocese
    1 month ago
  • Business
    • Banking & Finance
    • Oil & Gas
    BusinessShow More
    Unity Bank Shareholders Approve Merger With Providus Bank
    2 weeks ago
    Yomi Joseph Digital Pr Launches 360° Marketing Solutions To Transform Brands Into Industry Leaders
    2 weeks ago
    Gov Abiodun Showcases Ogun Investment Opportunities At AfCFTA In Algeria
    4 weeks ago
    Intra-African Trade Fair
    Nigeria To Host Intra-African Trade Fair In 2027
    1 month ago
    Bank of Agriculture
    How Nigeria-Brazil Pact Will Boost Agricultural Investment, Food Security – BOA
    1 month ago
  • Health
    Health
    Show More
    Top News
    NCDC Activates Lassa Fever Emergency Operations Centre In Nigeria
    3 years ago
    UNAIDS: Fully Financing HIV Response In Africa Will Save Millions Of Lives
    2 years ago
    How To Avoid Urinary Tract Infections During Sex
    2 years ago
    Latest News
    2025 World Pharmacist Day: Lagos Takes Healthcare To Ikorodu Communities
    1 week ago
    World Heart Day: Adopt Healthy Food Policies, CAPPA Tasks FG, States
    1 week ago
    Lagos Takes Fight Against HIV To Communities
    2 weeks ago
    Nigeria’s Health Financing: Lessons From Canada’s $32.5bn Tobacco Settlement
    2 weeks ago
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Reading: Netflix In TRouble, Loses Almost A Million Subscribers
Share
Notification Show More
Aa
Independent News ExpressIndependent News Express
Aa
  • Home
  • International
  • Africa
  • Corporate News
  • Politics
  • News
  • Entertainment
  • Lifestyle
  • Business
  • Health
  • More
Search
  • Home
  • International
  • Africa
  • Corporate News
    • Media Outreach
  • Politics
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
  • Business
    • Banking & Finance
    • Oil & Gas
  • Health
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Independent News Express > Blog > Entertainment > Netflix In TRouble, Loses Almost A Million Subscribers
EntertainmentTelevision

Netflix In TRouble, Loses Almost A Million Subscribers

Last updated: 2022/07/20 at 9:55 AM
3 years ago
Share
SHARE

After enjoying a long reign as the king of streaming, Netflix faces a tough fight to keep its crown.

Contents
Price hikes more ‘risky’Strong content critical

It lost almost 1m subscribers between April and July, as the number of people quitting the service accelerated.

But that was not as many as the streaming giant had feared.

Asked what may have stopped subscriptions sliding further, the firm’s chief executive, Reed Hastings, said: “If there was a single thing, we might say ‘Stranger Things.'”

- Advertisement -
Ad imageAd image

The new season of the hit drama has been a phenomenal success and may have helped stem the exodus of Netflix customers.

The company reported its first subscriber loss since 2011 in April, news that was followed by hundreds of job cuts and a sharp drop in its share price.

Rivals are challenging its dominance, while price hikes have taken a toll.

The subscriber losses reported on Tuesday were the biggest in the firm’s history, with the US and Canada home to the highest number of cancellations in the quarter, followed by Europe.

Guy Bisson, executive director at Ampere Analysis, said it was “inevitable” that Netflix would start to see its grip on the market loosen.

“When you’re the leader, there’s only one direction to go, especially when a large number of competition launches, which is what Netflix has seen in the last couple of years,” he said.

It is a stark change for Netflix, which enjoyed years of seemingly unstoppable growth, as it revolutionised the way people around the world consumed entertainment.

Its position as a global behemoth was cemented when the pandemic hit in 2020 and people, stuck at home with few other options for entertainment, flocked to monster hits like Squid Game and The Crown.

But as pre-pandemic habits return, Netflix has struggled to attract new sign-ups – and maintain the loyalty of existing members, especially as the cost of living crisis leads to belt-tightening.

The company also faces fierce competition from the likes of Apple TV, HBO Max, Amazon Prime and Disney+. Netflix was once the disruptor, making video rental stores like Blockbuster redundant. But the disruptor is fast becoming the disrupted.

Netflix’s move to make its service more expensive has also put off some customers.

Price hikes more ‘risky’

A “standard” plan in the US – which allows people in the same home to watch on two devices simultaneously – now costs $15.49, up from $14 in January and just $11 in 2019.

In the UK, basic and standard plans have both increased since January by £1 a month to £6.99 and £10.99 respectively.

“At some point, yes, they’re going to reach a threshold where a significant number of people say enough is enough,” Mr Bisson said. “Because of the additional choice… price hikes are a more risky strategy.”

For now, surveys suggest that Netflix is managing to lure back a higher share of deserters than its rivals. Many households also continue to identify it as the streaming option they would retain if forced to have only one.

In all, the company had roughly 220 million subscribers at the end of June – still well north of its closest competition.

But the company, long accustomed to posting double-digit growth, is grappling with its most serious slowdown in years, with revenue in the April-June quarter of $7.9bn, up just 8.6% year-on-year.

The firm’s share price has dropped more than 60% so far this year, as investors sour on its prospects.

“Netflix’s subscriber loss was expected but it remains a sore point for a company that is wholly dependent on subscription revenue from consumers,” said Insider Intelligence analyst Ross Benes.

“Netflix is still the leader in video streaming but unless it finds more franchises that resonate widely, it will eventually struggle to stay ahead of competitors that are after its crown.”

Shares climbed more than 7% in after-hours trade on relief that the losses were not larger. The firm had warned it could lose as many as two million subscribers.

Netflix has said it will jumpstart growth with a new ad-supported service and by clamping down on password sharing – which one study estimated was costing Netflix $6bn a year.

It is already charging more for sharing accounts in some countries in central and South America. It hopes to replicate this model around the world.

However, the company has known about problems with password sharing for years and has so far failed to find a solution.

In its shareholder update, the company said it was “encouraged by our early learnings and ability to convert consumers to paid sharing in Latin America”.

It said it expected its less expensive, ad-supported option to launch in early 2023, starting in “a handful of markets where advertising spend is significant”.

“Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering,” the company said.

The ad service has the potential to attract both existing customers inclined to cancel over price hikes, as well as new households hesitant to commit to a subscription, Mr Bisson said.

It should be possible for Netflix to make the same amount of money – or more – per user than it did by relying on subscriptions, he added.

Strong content critical

“Assuming they get it right – and by getting it right I mean the price … and the amount of advertising on it – then it’s potentially a strong strategic move for them,” he said.

But he said Netflix’s most critical task is ensuring it has strong material for people to watch – a job that has grown harder as it pushes to reach an increasingly broad audience.

New sign-ups in the US, for example, are coming from an increasingly older crowd, with different tastes than the younger viewers who were early streaming converts.

“They’re increasingly competing for that generalist audience, so the breadth of content that is needed becomes much wider and that’s why I think people are saying ‘there’s now a lot of stuff I don’t like,” Mr Bisson said. “It’s a very big challenge.”

Netflix needs “more frequent hits”, said Eric Steinberg of Whip Media, adding that Netflix also has room to experiment staggering its releases to keep a hold on its subscribers.

The company has already taken steps in that direction by releasing episodes of the fourth season of Stranger Things in two batches this year, but the “pressure is on” he said.

“They don’t have the sandpit to themselves anymore,” he said. “In an inflationary environment like the one we’re in and also great programming [at the competition], people are going to re-evaluate how much they’re willing to pay.”

You Might Also Like

GOtv Stream vs. Traditional TV: Why Viewers Are Loving the Flexibility

Securing Africa’s Digital Future: Entertainment in Safe Hands

BBNaija S10: Joanna, Mide, and Isabella Clash as Denari and Tracy Exit the House

Akamai Adaptive Media Player 2: Bitmovin And Akamai Set New Streaming Standard

France Télévisions Hits Record Digital Engagement With Its Roland-Garros 24×7 Channel Powered By Wildmoka

TAGGED: Netflix
INadminNG July 20, 2022 July 20, 2022
Share This Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Telegram Email Print
Previous Article How Nigeria’s Super Falcons Lost Semi-final Ticket To Morocco 
Next Article Mane, Oshoala Walk Away With CAF Men’s And Women’s Players Of The Year Top Prize At CAF Awards
about us

Independent News Express (iNews Express), a publication of 4Ds Nigeria Limited, is birthed out of the desires of the founding fathers to report News as it is.

We value Professionalism, Excellence, Service, Creativity and Integrity.

The Company

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy

Quick Links

  • Advertise with us
  • Newsletters
  • Deal

Categories

Find Us on Socials

© Independent News Express. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?