Why is it important: Is consumer love for streaming services waning? Following news that the number of Netflix users dropped for the first time in more than a decade, a new report shows US households have stopped adding to their list of streaming subscriptions after nearly two years of steady growth.
In 2020, streamers like Netflix saw their profits and user numbers skyrocket as people were forced to stay at home during global lockdowns. At one point, Netflix’s market capitalization was higher than Disneyalthough the latter is now worth more than twice as much as its streaming rival ($88 billion vs. $210 billion).
But, with the exception of China, the lockdowns have been lifted and many people have returned to normal working lives, which is the most not happy. And it helped to even out the number of streaming services that people subscribe to.
bloomberg reports that a quarterly survey by research firm Kantar shows that the number of on-demand services accessed per household remained at 4.7 between Q4 2021 and Q1 2022. The last time this number remained unchanged from one quarter to another was between the first quarter of 2020 and the second quarter of 2020. when there were three per household.
We’ve seen the streaming crown of Netflix start to fall in recent times. The company has lost 200,000 subscribers since the beginning of the year, for which he blames password resellers, increased competition and withdrawal from the Russian market. January also saw a price hike that he says cost him 600,000 subscribers in the US and Canada.
The company also has to contend with the rising cost of living, which has seen many tighten their belts. Another factor in the user’s downfall is his habit of canceling popular shows; Dion’s upbringing has just become the latest to join a very long list. It may have been a long time ago, but this writer still hasn’t forgiven Netflix for canceling the Santa Clarita diet and modified carbon.
Netflix that says it’s now open to promotional, cheaper levelssaw its share price drop from nearly $600 at the start of the year to $198.
Also illustrating that people are not going to subscribe to any streaming service was the announcement by Warner Bros. Discovery last week about what CNN+ Shutdown just a month after launch, less than 10,000 people watched it daily. Even Quibi managed to cling to life for seven months before being put out of his misery in 2020.
“Expect higher churn and switch rates as consumers are more selective about what they watch,” Kantar said in the report. “It could be more challenging for new market entrants like CNN+ who will find it hard to justify their value in an already saturated market.”
A Ray of Hope for Netflix is the fourth season of the flagship series Stranger Things, which premieres next month. At a time when, as they say, cost limitation The show’s original content reportedly cost $30 million per episode to produce. But like Disney Plus’ The Mandalorian, the number of new/regular subscribers that Stranger Things 4 attracts could justify the cost.
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