Netflix’s current problems have been highlighted by recent data suggesting that an increasing number of long-term subscribers are opting out of streaming.
The results of a study conducted by data analysis firm Antenna and reported by The information show that 13% of cancellations in the first quarter of this year are related to Netflix subscribers who have been with the service for at least three years, compared to 10% in the same period a year ago and 5% in the same period two years earlier .
Antenna, who reached her figures after studying data from a group of five million Americans who anonymously share their streaming subscriptions, also said her survey found that new subscribers accounted for 60% of those canceled in the first quarter of 2022. which is a decrease of 4% compared to the previous quarter, which suggests that it is making some progress in its efforts to retain new customers.
The survey follows an update by Netflix last month, which revealed that 200,000 subscribers worldwide dropped out of streaming in the first quarter of this year, although the figure is expected to jump to two million this quarter.
Customers may push the opt-out button for a number of reasons, but the decision to control spending in the face of rising household bills caused by rising inflation is likely to be a major factor. Such layoffs will in some cases involve customers opting out of several streaming services in favor of just one or two, and with competitors such as Disney +, Amazon Prime, Apple TV +, HBO Max and Hulu, among others, competition is fierce.
Brendan Brady, Antenna’s leader in media and entertainment, said some of these rival streamers are downloading their own content from Netflix and releasing it into their own services, forcing Netflix to “rely more on its originals that have been affected or missed. ”
In an effort to attract new customers and retain existing ones, Netflix plans to launch an ad-supported level with a lower monthly subscription fee, likely before the end of this year. In another effort to make its service more attractive, it is also considering adding a live broadcast element to its service, including various unsigned broadcasts and stand-up specials.
To find out what’s available for viewing in the myriad video streaming services right now, see the handy Digital Trends guide.
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