Netflix loses over 1.5 million subscriptions after price raise
According to a recent report, Netflix and its competitors have lost millions of dollars due to the recent price hikes. The news is that the streaming giant is accountable for over half of the 4.4 million subscriptions lost in Spain alone in recent months. Sources claim that the price increase and the elimination of shared accounts are the causes.
The report came in via the most recent Barlovento Comunicación viewer habits survey. The report highlights that over the previous quarter, over 4.4 million losses were reported on streaming services including Netflix, DAZN, and Prime Video.
The analysis firm asserted that 1.6 million users have left the home of series like Stranger Things overall, with 41.2% of those customers leaving due to the company's new, stringent regulations.
Is Netflix’s subscriber drop worrying?
According to the survey conducted by Barlovento Comunicación, the price hikes that the industry has been facing for years are to blame for the dramatic decline in subscribers in Spain.
The contentious news that the streaming giant will no longer allow shared accounts was also a major factor for these losses. Nevertheless, despite this news, Disney+ is still attempting to emulate Netflix's strategy for password sharing.
If we only consider screen share, Netflix continues to lead the OTT market, but Prime Video holds the top spot for another quarter. Furthermore, the survey also states that they have never witnessed such a low level of market penetration, as personal lows are reached by Disney+ (31.0%), DAZN (12.4%), and Skyshowtime (5.1%).
Lastly, two out of three OTT users who were polled in November by the market research company stated that they are unlikely to agree to viewing advertising-supported content in exchange for a rate reduction.
Earlier in the year, Co-CEO of Netflix Greg Peters stated that the company's philosophy is upheld by the price increase during the third-quarter results call. According to Peters, the "occasional" price increase keeps enabling viewers all over the world to access fantastic content.
“We want to sustain that virtuous cycle because when we partner with the best creators, we can delight our members, invest more in amazing TV series, movies, and games, and build an even more valuable business,” he said.
Meanwhile, the home to original series like Black Mirror is going through a new phase of expansion. That is if we look at the global stats, despite all the negative coverage surrounding its choices.
The online streaming service had reported that it had added nine million new users, bringing its total number of subscribers to 247.15 million, during the most recent fiscal disclosure of data.