More long-term Netflix subscribers are canceling their subscriptions, according to a report from The Information. Survey data viewed by the outlet revealed that subscribers who have been with the service for more than three years accounted for 13 percent of cancellations in the first quarter of 2022.
The Information says it got its data from Antenna, an analytics firm that gathers data from 5 million Americans who share their streaming subscriptions anonymously. The data showed that overall cancellations hit 3.6 million people last quarter, an increase from the 2.5 million cancellations in the past five quarters.
As the number of cancellations overall has grown, The Information reports that new users are accounting for a smaller share of them — another indicator that Netflix is struggling to retain users for longer periods of time. In the second quarter of 2021, people surveyed who subscribed to the platform for less than one year made up 70 percent of cancellations, while long-term subscribers accounted for six percent. 60 percent of cancellations were made by newer subscribers last quarter.
A number of factors are contributing to Netflix’s wavering subscriber count
Here at The Verge, a number of my colleagues who’ve been with Netflix for years have already given up their Netflix subscriptions or are at least considering it. Although I’m (admittedly) spoiled and get to mooch off a shared Netflix subscription, I don’t find myself watching it that much anymore due to its selection of shows and movies, some of which I can just as easily find on other services I subscribe to, like Hulu and Peaco*ck. Not to mention that it canceled Archive 81 — and yes, I’m still mad about it — which was actually one of the few shows I enjoyed watching on Netflix.
Plus, like our news editor Richard Lawler aptly points out, after all of the rate hikes over the years, Netflix’s “price has risen out of default subscription range, and it’s easily out of ‘forget I even had it’ range,” when compared to cheaper, ad-supported plans from other services like Hulu, which costs just $6.99 / month.
Netflix has started 2022 out rough. In the first quarter, the streaming giant reported losing 200,000 subscribers, marking the first time it lost subscribers in over 10 years. On top of that, Netflix expects to lose another 2 million more subscribers in the second quarter of 2022. It currently sits at a total of 74.58 million subscribers in the US and Canada.
We will likely see a number of changes from Netflix within the next year or so, as the platform reportedly told employees it plans on launching a cheaper, ad-supported plan sometime this year. Netflix co-CEO Reed Hastings hasn't been shy about cracking down on password sharing, either.
FAQs
More long-term Netflix subscribers are canceling their subscriptions, according to a report from The Information. Survey data viewed by the outlet revealed that subscribers who have been with the service for more than three years accounted for 13 percent of cancellations in the first quarter of 2022.
Why is Netflix losing all of its subscribers? ›
Why Netflix Suffered Subscriber Losses? Netflix revealed that it had lost 1 million members for the first time in two decades; it claimed that it was a result of rising inflation and increasing competition in the streaming market.
Is Netflix losing subscribers in 2024? ›
How many paid subscribers does Netflix have? Netflix had around 269.6 million paid subscribers worldwide as of the first quarter of 2024. This marked an increase of over nine million subscribers compared with the previous quarter.
Is Netflix declining in popularity? ›
Netflix reported 82.7 million paid streaming subscribers across the United States and Canada in the first quarter of 2024. After a decline in the U.S. and Canadian subscriber base during the first nine months of 2022, this marked a growth of about eight million compared with the same quarter of the previous year.
Did Netflix lose subscribers because of the price increase? ›
Disney, Netflix And More Price Hikes Cause Subscribers To Axe Streaming Services, Study Says. Senior Contributor.
What is Netflix's biggest loss? ›
After enjoying a long reign as the king of streaming, Netflix faces a tough fight to keep its crown. It lost almost a million subscribers between April and July as more people decided to quit the service.
Who is Netflix's owner? ›
Netflix, Inc. is a media company based in Los Gatos, California, founded in 1997 by American entrepreneurs Reed Hastings and Marc Randolph. The company has been pushing the envelope as a content deliverer since its inception.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
How many Netflix users can you have on one account? ›
You can create profiles for members in your household, allowing them to have their own personalized Netflix experience. Your account can have up to five individual profiles, and you can set a maturity rating level on each one.
Why did Netflix lose so many customers? ›
So why did Netflix lose subscribers? The subscriber loss "seems to be due to increased competition from other streaming services, adverse global economic circ*mstances, and the fact that the company already has a very high level of subscribers," says Ferran G. Vilaró, CEO of streaming video analytics company NPAW.
Netflix's revenue did increase — nearly 8% to $8.54 billion for the quarter. The company forecast that revenue will jump 11% in the fourth quarter, reaching $8.69 billion. It turns out membership growth did, in fact, return. Investors appear to once again view Netflix as a growth opportunity.
Is Netflix losing customers? ›
In 2022, Netflix reported losing subscribers for the first time in more than a decade — about 200,000 accounts in the first quarter of that year and close to 1 million in the second.
Why are people canceling streaming? ›
The increase was due to higher prices, not additional services. Nearly half the people surveyed said they would cancel their favorite streaming service if monthly prices went up another $5, the study said.
Why is Netflix so expensive now? ›
As we continue to add more TV shows and movies and introduce new product features, our plans and prices may change. We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation.
What streaming services are losing subscribers? ›
In its quest, no streamer has raised prices quite as often as Disney+. Doing so has increased ARPU (average revenue per user), but it's also decreased actual users. After its latest price increase, on October 12, 2023, Disney reported a loss of 1.3 million subscribers.
How many people will cancel Netflix? ›
Data presented by OnlyAccounts.io shows nearly 40 per cent of all US subscribers plan to cancel Netflix due to increased prices. According to a Civic Science survey, conducted among US Netflix subscribers, Americans are fed up with the streaming giant's increasing prices.
How much money does Netflix lose from password sharing? ›
According to an estimate, U.S. video streaming services will lose over 2.3 billion U.S. dollars in membership revenue due to password sharing in 2022. Netflix accounts for the highest share of that total - the company's subscription fee loss was estimated to reach around 791 million U.S. dollars.
Is Netflix gaining subscribers again? ›
SAN FRANCISCO (AP) — Netflix registered its third-consecutive quarter of accelerating subscriber growth in the final three months of 2023, closing out a comeback year that included a crackdown on viewers freeloading on the video-streaming service and a smattering of price hikes.
