With the news that, for the first time, Netflix actually started losing customers, many thought (and shareholders hoped) that it was just new customers canceling Netflix.
According to new research spotted by 9to5Mac, that’s not the case.
Thanks to a combination of factors, like the company repeatedly increasing prices and planning a crackdown on Netflix account sharing, plus a lot of competing streaming apps, 200,000 Netflix subscribers canceled their account.
Research firm Antenna told The Information that the lost subscribers are not just the expected churn from new accounts, like people who only want a Netflix trial, but also people who subscribed for more than three years to the platform. Also, their number is rising.
“Newbie subscribers, meantime, accounted for only 60% of cancellations in the quarter, down from 64% in the fourth quarter. Also in the first quarter, overall cancellations rose to 3.6 million people, compared with around 2.5 million in each of the preceding five quarters. Antenna says it draws its data from a panel of 5 million Americans who anonymously contribute their streaming subscriptions,” reports The Information.
All in all, in the beginning of 2022, just 5% of the people who used the platform canceled Netflix. However, in the first quarter of 2022, that number rose to 13%.
Brendan Brady, media and entertainment lead at Antenna, said that “Consumers vote with their wallets on a monthly basis, and now there are just more viable candidates on the ballot,” and that, since other competitors withdrew their content from Netflix, the company was forced to rely more on its originals.
As you might have noticed when looking for something to watch, that list is somewhat lackluster.