This is the biggest loss that the company has faced
Netflix has officially announced that they have lost nearly 1 million subscribers in just three months. The company that started by giving DVDs on demand in a red envelope has evolved into the streaming service that brought in a new age to cinema and television. But with that came several decisions that led the company to where it is now.
Netflix And Its Decisions
Ever since it became a global phenomenon in 2014, Netflix has hiked its subscription prices several times. Currently, the price of a standard service costs $15.49, which is much higher than the $10 that HBO Max and Prime Video ask for. The company revealed that they had lost 200,000 subscribers at the start of this year. It was the biggest loss they had faced in a decade, and it resulted in 150 employees getting laid off.
The new report comes from IndieWire, which showed reports of 970,000 subscribers leaving in three months. The company had forecasted that they will be losing 2 million subscribers, so this was actually better. We get to see online on a daily basis where people bash the company for its insane prices and lack of good content. But the company’s solution to this was partnering with Microsoft to have cost-friendly ad-supported plans.
With all that said, Netflix is still the service with the most marketable content with originals like Cobra Kai, Stranger Things, Squid Game and more. Additionally, they have movies like The Gray Man and Knives Out 2 arriving soon. The ad-supported plans might bring customers back, even though many will be upset as other streaming services have not resorted to this. Either way, it hasn’t hit a major roadblock, but they need to be careful moving forward.