Why is Netflix losing subscribers?

Netflix has paved the way for streaming services. It’s the biggest one out there, though there are many more today. It gained popularity for a variety of reasons including its choice not to include ads, to the relief of viewers.

Now it’s grown into a streaming giant that provides older shows, new shows, and its own original series. It’s produced huge hits like Stranger Things and Bridgerton, and gave life to other shows that weren’t Netflix originals like Lucifer and Manifest.

Now the company is competing with a number of others like HBO Max, Hulu, Amazon Prime Video, and many more. It still remains the top choice when selecting a streamer, but is that about to change?

Why is Netflix losing subscribers?

According to a recent Variety article, Netflix has lost 200,000 subscribers in Quarter 1. The streaming service expects to lose another two million going into the second quarter. Netflix has shared there are a few reasons why they are seeing such a significant downward trend.

The first is what I shared above. It’s no secret that all of these companies are competing with each other. There’s become too many of them. And as the service loses more and more titles to their parent companies, that may lead to a shift in subscribers. Two big shows that happened with are Friends and The Office.

Another reason cited was the use of password-sharing, which Netflix said they will be cracking down on. Honestly, this isn’t a good idea at all, let alone while they are losing people. Viewers are not going to like the company preventing them from sharing their passwords. This change could be coming in a year. The streaming service also cited inflation and Russia’s invasion of Ukraine having an impact on their numbers.

I think another factor could be pricing. Netflix has one of the highest subscription rates right now. With so many streaming services it’s hard to keep up and pay for everything. So what’s its solution? The Hollywood Reporter shared that in the next year or two, the streaming service will add advertising to its platform to provide a cheaper plan for TV-lovers. One of the main draws to Netflix is its lack of ads. But if viewers are okay with the ads so they can have a cheaper plan, then why not?