In the first 3 months of 2022, Netflix lost around 200,000 subscribers and its stock dropped 35% which is the lowest one-day drop in Netflix history. Netflix had a growth target and they fell under that while losing a chunk of customers. Netflix was an ad free streaming service allowing for a plethora of new and diverse media, due to recent current events, Netflix announced the reasons.
Why is it Losing Subscribers?
Netflix claims that the war between Ukraine and Russia, password sharing, tensions with COVID-19, and stronger streaming service competition. Millions of people have shared their Netflix passwords due to an easy cost between people. Though Netflix talked about heavily banning it, they decided not to, but, in 3 test countries, it will be charging for it due to the revenue that was not being demonstrated. The countries will be Peru, Chile, and Costa Rica. Many other streaming services have bought mainstream shows and movies that grow heavy competition between other companies. These services such as HBO Max, Hulu, Paramount +, Disney +, etc., are all competitors that many people are paying for being that Netflix is not the favored streaming service anymore.
Netflix and the Rising Prices
Netflix has always claimed to have been an ad-free streaming service but due to the significant drop in revenue, they are offering to become a streaming service with ads for a cheaper price than the regular value which has also gone up. The standard plan raised to $15.50 per month which is about $1.30 more than it used to be. This made a lot of customers aggravated due to the rise in prices
Will Netflix be Okay?
Netflix is still a very successful company and brand due to its enthralling originals and rights to different shows. The ratings of Outer Banks, Ozark, Selling Sunset and Bridgerton has helped Netflix tremendously. Still, Netflix seems to be the most popular streaming service in the world with 220 million subscribers and has been around for 24 years. Due to the recent announcement of shows like Ginny and Georgia and Stranger Things, many analysts believe the ratings and stock will increase by the end of 2022 though it's unpredictable due to the fluctuating and inflating economy that the modern world is going through.
