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5 reasons why Netflix is losing subscribers that go beyond being pricier

Netflix has been considered the king of streaming platforms for a long time, but it seems like now they’re losing because of how many subscribers they have lost for the first time in a decade. Here are 5 reasons why.

Netflix was originally founded to sell and rent DVDs by mail, but in 2008 they introduced streaming media and video on demand. In 2013 Netflix entered the content-production industry with the debut of House of Cards. In January 2016 they started to expand and is now available worldwide aside from Mainland China, Syria, North Korea, Russia, and Crimea.

Nevertheless, Netflix has lost over 200,000 subscribers in the first three months of the year for the first time in a decade while estimating that they would add 2.5 million new customers. Now, they’re warning that they may lose 2 million subscribers in the second quarter of 2022.

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Here are 5 reasons why Netflix is losing subscribers:

1. Netflix pulled their service from Russia

After the start of the invasion of Ukraine, Netflix was one of hundreds of companies worldwide that decided to stop their activities in Russia. Because of this, the company has admitted to losing some 700,000 subscribers.

2. Netflix raised their prices in US and Canada

Netflix decided to raise the subscription price for the United Stated and Canada in January of 2022. It is estimated that 600,000 subscribers decided to cancel their Netflix account instead of paying the raised price.

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3. People share their Netflix accounts

This is one of the biggest problems that Netflix has, mainly because when people share their passwords they are ignoring the Terms of Service that ban sharing accounts. It is estimated that 100 million households worldwide, with 30 million of those in the US and Canada, are using the service without paying for it.

4. Netflix keeps losing content from media companies

Streaming platforms need a robust catalog of material that keep people watching after the most recent viral hit. So, people might sign up to watch Bridgerton or Inventing Anna, but they’ll stick to watch Gilmore Girls, or When Harry Met Sally.

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When Netflix was the main playing, big companies like Sony, Warner and Disney licensed their TV shows and films to this streaming service, so it wasn’t a problem. But now, each of these companies have their own streaming service, leaving Netflix with very little that people want to watch (and rewatch).

5. There’s too much competition

There are too many streaming services available, like Hulu, HBO Max, Amazon Prime Video, Peacock, Paramount+, Disney+, Apple TV+, ESPN+, and the list goes on.

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It’s exhausting, because it seems that each has something that people want to watch, but the budget isn’t enough to pay for all of them. So, if a platform doesn’t have interesting content, then they’ll switch to another with things they’ll actually watch.

So now, Netflix is one of the most expensive platforms in the market, and with content that isn’t interesting for everyone.

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Is this the end of Netflix?

After continuous growth for a decade, it’s surprising that Netflix is starting to have negative numbers, but there’s a lot of unexpected circumstances that have led to this moment.

At the end of the day, consumers get to decide which platforms they want to subscribe to. Ultimately, Netflix can and has to change before the problem because too big and unmanageable.

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Have you recently unsubscribed from Netflix? Have you thought about it? Or are you happy with the service?

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