Mon 23 May 2022:
While Netflix has acknowledged that it is rapidly losing paid members, data analytics firm Antenna has revealed that in the first quarter of this year, the subscription platform experienced 3.6 million cancellations in the US, its most mature region.
Netflix lost nearly one million dollars in each of the first and fourth quarters of 2021.
Netflix’s active monthly churn rate was 3.3 percent by the end of March.
“Data indicates that Netflix’ active monthly churn rate increased +0.95p points month-over-month in January. By the end of March 2022, Netflix active monthly churn rate was 3.3 per cent,a the US-based analytics company said in a blog post.
The last time Antenna saw a similar spike in Netflix churn was an isolated incident in September 2020, when the service released the film Cuties to much controversy (active monthly churn reached 3.6 per cent during that period).
In the past six quarters, Netflix “Gross Additions” have remained fairly stable, ranging from 2.2 million to 2.9 million.
The company raised prices on all of its plan tiers domestically in January 2022, which led to a jump in cancellations, said the report.
“As a whole, Netflix’ performance this quarter suggests increased price sensitivity among its subscriber base, likely heightened by the abundance of consumer choice and proliferation of other services,” said Brendan Brady, Media and Entertainment Lead.
Netflix is fast losing long-term subscribers — who have been with the streaming service for more than three years — further adding to its woes as the company faces stalled growth amid revenue slowdown.
Amid slow revenue growth, Netflix has laid off nearly 150 employees, primarily in the US.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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