The fall of users netflix This is a very important concern for the streaming service of films and series, but its leaders must digest an even more alarming fact: the age of the lost customers. As published Informationin the past two years the number of long-time subscribers who have decided to unsubscribe has increased significantly.
We’re talking about people who left Netflix after being part of the platform for more than three years. According to data provided by Antenna, a renowned research firm, 13% of the 3.6 million cancellations recorded in the first quarter of 2023 came from customers belonging to the said group.
This is undoubtedly a worrying fact, as it makes more evident a trend recorded since the first quarter of 2020. At that time, only 5% of cancellations corresponded to users with more than three years on Netflix; however, in Q1 2021, they already accounted for 10% of deleted accounts.
This clearly shows that the streaming platform is struggling to retain the interest of its oldest customers; which can also be translated into a loss of loyalty to your brand or proposition.
Another important point to keep in mind is that cancellations for the first quarter of 2023 were significantly higher than those reported by Netflix on previous occasions. Keep in mind that from the fourth quarter of 2020 to the same period of 2021, the average number of completed subscriptions was 2.5 million each.
Netflix is losing old customers and it’s not just for content, but for the economy
The economy has played a key role in Netflix’s rise in cancellations among its former audience, experts say. Price increases, coupled with the emergence of a growing number of competitors with cheaper subscriptions and more interesting content on offer, have been crucial in this story. “Consumers vote with their wallets every month and there are now more viable candidates on the ballot,” he said. Brendan Bradyof the antenna.
But if Netflix can salvage anything positive from the negative, it’s that the percentage of cancellations among subscribers with less than a year of membership on the platform has plummeted. Just as in the first quarter of 2020 they represented 69% of a total of 2.1 million unsubscribed subscriptions, over the same period of 2023 they accounted for 60% of the 3.6 million withdrawals, even if the latter represent a greater number of users.
For now, the movie and series streaming service has presented several plans to try to soften the blow due to the decline in users. One of the biggest involves launching a cheaper plan that will include ads; it was only expected within two years, but the company has reportedly decided to step on the accelerator and introduce it in the last quarter of 2023.
Separately, Netflix will also experiment with streaming live events, which will initially be used for unscripted shows and comedy specials. While the company also plans to change its original content production strategy, focusing on releasing fewer but higher quality titles.