After a long reign as the biggest streaming service, Netflix is now facing an uphill task to keep its subscribers from quitting. Netflix lost almost 1 million subscribers between April and July. The number of people quitting the service has increased.
Yet, the loss of subscribers is not as bad as the streaming giant feared.
Asked what may have stopped subscriptions sliding further, the firm’s chief executive, Reed Hastings, said: “If there was a single thing, we might say ‘Stranger Things.'” The new season of the hit series has been a phenomenal success and may have possibly stemmed the exodus of Netflix customers.
Netflix first reported its first subscriber loss since 2011 in April. On its heels followed hundreds of job cuts and a big drop in share price. The streaming service is facing competition from rivals like Apple TV, HBO Max, Amazon Prime and Disney+. Also, Netflix’s move to hike prices has not gone down well with customers who are flocking to other OTT providers.
According to the BBC, the subscriber losses reported on Tuesday were the biggest in the firm’s history, with the US and Canada home to the highest number of cancellations in the quarter, followed by Europe.
Guy Bisson, executive director at Ampere Analysis, said it was “inevitable” that Netflix would soon lose its grip on the market.
“When you’re the leader, there’s only one direction to go, especially when a large amount of competition launches, which is what Netflix has seen in the last couple of years,” he said.
