Netflix is losing subscribers for the first time - considers cheaper ad-supported tier
Netflix has blamed increased competition and global economic downturns
Published: 20th April 2022 | Source: flatpanelsHD |
Netflix has lost 200,000 subscribers in Q1 2022
For the first time in 10 years, Netflix has lost subscribers. In Q1 2022, Netflix has lost 200,000 subscribers, with the company blaming a higher level of subscription cancellations and the company's exit from the Russian market, which lost the company 700,000 subscribers.
While this seems like bad news for Netflix, it is worth remembering that the company gained 8.28 million subscribers in Q4 2021, making Q1 2022's regression in subscriber numbers a minor factor. However, Wall Street analysts were expecting Netflix to gain 2.5 million subscribers this quarter, making Netflix's loss of subscribers damaging to the company's stock price.
In Q2 2022, Netflix currently expects to lose around 2 million subscribers. This is due to a worsening global financial situation, the war in Ukraine, and rising fuel prices. Netflix's recent price increases in many nations, including the UK and US (more info here), will certainly not help matters. Many Netflix subscribers are currently downgrading or cancelling their subscriptions for economic reasons.
Netflix currently has 221.64 million subscribers worldwide.
Password sharing and adverts
Netflix is now planning to crack down on password sharing, confirming that they are not testing new tools to detect the practice. Netflix has estimated that 100 million households benefit from password sharing, a practice that the company previously encouraged.
Neflix's CEO, Reed Hastings, has also confirmed that the company is looking into a cheaper ad-supported plan for users. This plan would allow Netflix to offer their services at a lower price point. Netflix plans to offer this option as "a consumer choice", within the "next year or two".
Increased pricing, greater competition, and a worsening global financial situation is starting to hit Netflix's subscriber numbers, and Q2 2022 is expected to be worse than Q1 2022 in this regard.
You can join the discussion on Netflix's lowering subscriber numbers on the OC3D Forums.
Most Recent Comments
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Originally Posted by g0ggles1994
If Netflix really think coming down hard on password sharers will go well, they are deluded. It will push more to leave rather than join them.
The fact that they still lock HD streaming out in the lowest tier while everyone else doesn't is hilarious. If I was just streaming for myself, there is no chance I would pay extra for that. |
Not forgetting the woeful clamping of their bitrates. You are also restricted to 720p 2.0 unless using their app or edge. Available plugins (hacks) for both Firefox and Chrome that re-enable 1080 and 5.1
and this is for all teirs.Quote
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Originally Posted by g0ggles1994
The fact that they still lock HD streaming out in the lowest tier while everyone else doesn't is hilarious. If I was just streaming for myself, there is no chance I would pay extra for that.
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Originally Posted by CalVic
Not forgetting the woeful clamping of their bitrates. You are also restricted to 720p 2.0 unless using their app or edge. Available plugins (hacks) for both Firefox and Chrome that re-enable 1080 and 5.1
and this is for all teirs. |
I'll hold on for now but they can F off if they think I'm paying for something and watching ads.
Edit. BTW the full picture is that people are dropping loads of subs, not just Netflix. Luxuries are the first thing to go when the cost of living sky rockets. Thankfully I don't pay for a TV license any more so I'm ok with paying another quid as I don't have anything else eating from my bank account every month other than essentials like power and water etc.Quote
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Originally Posted by Anon
Isn't the resolution thing to do with DRM? Anyway, I've never been a fan of Netflix's compression, especially in bright or dark scenes; you get so many artefacts.
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Yeah, pretty much related to the woeful DRM they're using. New releases on their platform get higher bitrates, after a week or so they turn it down. They pushed it trough using COVID as an excuse.Quote
CSS Valid
The fact that they still lock HD streaming out in the lowest tier while everyone else doesn't is hilarious. If I was just streaming for myself, there is no chance I would pay extra for that.Quote