Netflix losing more long-term subscribers

Netflix is now losing more of the long-term subscribers who have been with the company for more than three years

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Streaming giant Netflix is already facing trouble in terms of loss of subscribers and lawsuits from investors. Amidst the situation, more trouble seems to be in store for the OTT giant. A report from the leading daily has mentioned that more number of long term subscribers of Netflix are now cancelling their subscriptions. A survey data has revealed that  the subscribers who have been with the service for more than three years accounted for nearly 13 percent of the cancellations during the first quarter of 2022.

The information about the subscriptions was given out by an analytics firm which collects data from nearly 5 million Americans, who tend to share their streaming subscriptions on an anonymous basis. As per the data the overall transactions went to a total of 3.6 million people in the last quarter which has marked an increase from 2.5 million cancellations since the past five quarters. The above figures have indicated that the number of cancellations has increased gradually and is more prominent in recent times. The number of new subscribers makes a very small percentage which is another indicator that the company is struggling to win long term users.

During the second quarter of 2021, it was noticed that people who had subscribed for less than a year accounted for nearly 70 percent of the cancellations. The cancellations from the long term subscribers accounted for 6 percent. In the previous quarter, about 60 percent of the cancellations were made by the new subscribers.

One of the main reasons for the cancellations the company had cited was account sharing in a household. The company said that this prevented the company to make new subscribers. Another reason was the selection of films and web series on the platform that people could easily find on other platforms like Hulu and Peacock. Netflix has surely received a rough start in 2022 and it could also be blamed on the competition in the market.

Photo Credits: Pixabay