25% of subscribers want to cancel their subscription

Netflix must continue to lose subscribers. According to a study, a quarter of American customers want to cancel their subscription. Subscribers point to several factors, including rising prices.

Reviews.org, a non-profit company that specializes in testing products and services, has surveyed 1,000 Americans about their streaming habits. According to the survey, the average person subscribes to four different VOD services.

Unsurprisingly, Netflix is ​​the most popular streaming service in the United States. 77% of respondents subscribe to a Netflix subscription. It is also the most watched platform in American homes, ahead of HBO Max and Disney +.

“70% of respondents regularly watch Netflix, meaning that the service is used more than any other streaming service”lined the report on Reviews.org.

Despite its huge popularity, Netflix has experienced a decline in its customer base. During the second quarter of the year, the service was abandoned by 970,000 subscribers. Last quarter, more than 200,000 customers worldwide canceled their subscription. Since the beginning of the year, 1.2 million subscribers stopped the platform.

According to a report by Reviews.org, the Netflix subscriber exodus is set to last. One in four subscribers plan to cancel their subscription by the end of the year. In other words, Netflix may be deprived soon 25% of its American clients.

Also read: Netflix counts the death of TV channels to revive its growth

Repeated price hikes

More than 40% of subscribers who plan to cancel their subscription believe that the service has become very expensive. In recent years, Netflix has gradually increased its prices. In France, the catalog is already available at a starting price of €8.99 per month. The most complete offer, with 4K and multiple screens simultaneously, is currently priced at €17.99 per month. Similar developments have been applied in other countries, including the United States. Netflix acknowledged this 10th increase in account sharing, a widespread practice that weighs on its revenues.

Reviews.org’s findings were shared by analysts at Attest, a consumer research firm, Forbes reports. Firm CEO Jeremy King says that subscribers now very sensitive » to increase the price, even the smallest. 19% of Netflix subscribers who plan to cancel their package point the finger inflation and the general increase in the cost of living.

“This may explain the subsequent decrease in viewership of the platform in the last quarter, especially with the inflationary pressure that further reduces the purchasing power and income of the American people.”explained the leader of Attest.

Remember that Netflix remains the most expensive VOD service in the American market. As Reviews.org points out, the average monthly cost of a subscription in the United States is $15.15. For its part, HBO Max costs an average of $12.49, compared to $7.99 for Disney+.

To address the bleeding of its subscriber base, Netflix plans to launch an affordable subscription supported by advertising. This offer will be offered at a monthly price between 7 and 9 dollars. So it will be small cheaper than the standard plan currently from Netflix, priced at $9.99 in the United States. Note that this subscription does not provide access to the entire Netflix catalog. In addition, some functions, such as offline downloading of films and series, will not be offered. The plan will be rolled out by the end of the year in some countries.

However, the price is not the only reason behind the jump in subscribers. In fact, 21% of those who left regretted that they could no longer find the program they wanted on the platform. Recently, many contents are missing from the catalog. Warner Bros. has brought back many films and series to promote its own service. Cult programs, such as Fight Club, A Prince of New York, Man of Steel or the Hobbit trilogy are also preparing to leave the catalog on September 30.

The scarcity of new productions on Netflix has also contributed to the disenchantment of subscribers. The health crisis is actually forcing the VOD giant postpone the shooting in many anticipated productions. This is the particular case of Stranger Things, whose season 4 is not released until 2022, i.e. three years after season 3. In fact, the catalog does not provide enough for many months to support growth. .

The VOD market, a sector that is becoming increasingly competitive

Of course, Netflix is ​​also suffering the rise of competition. While Netflix continues to lose customers, a service like Disney+ is attracting more subscribers. The platform of the Disney giant has recently passed the milestone of 137 million members worldwide, despite the announcement of future price increases.

For Jeremy King, the wave of unsubscriptions affecting the VOD leader also shows the potential end of Netflix’s monopoly in the streaming industryg ». In this context, alternative services, such as Disney +, HBO Max or even Hulu, can find a more important place.

“Competition has never been fiercer”lined up Jeremy King.

Faced with this intense competition, Bog Iger, former CEO of Disney, convinced that not all platforms are able to do well. In his view, currently there are too many players in the market. While considering that Netflix will continue to grow” despite his current concerns, he predicts the disappearance of some competitors in the coming years.

Source:

reviews.org

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