The streaming video service Netflix belongs to the category of world market leaders. This video hosting can be considered an old-timer in the field of video broadcasting and one of the most advanced platforms that are popular among hundreds of millions of TV viewers.
But lately, things have not been going well for this service. Netflix is losing more and more subscribers, and the administration of the service is planning cheap subscriptions with ads and crackdown on account sharing.
Netflix struggles to attract new subscribers and loses many existing customers in the process. The solution should be a new subscription with ads and a co-pay for account sharing.
- In 2022, Netflix lost a lot of subscribers and was able to attract very few new subscribers.
- To protect itself from further losses, Netflix is planning several steps that should please, in particular, investors.
- A cheaper subscription model with ads, lower costs, and account sharing restrictions should help.
Efforts are currently underway at Netflix to rectify the situation. The once-successful streaming service lost 200 000 subscribers in the latest quarter, a blow after a decade of subscriber growth. In the fourth quarter of 2022, about two million more subscription contract terminations are expected, although these will, of course, be partially offset by new subscriptions.
However, things are not going well for Netflix, and as a result, Netflix CEO Reed Hastings has had to justify himself to investors. In response to the drop in users, three major steps are planned: the introduction of a cheaper subscription model with ads, new spending on the right to share your password with other users, and cost savings for Netflix.
Until now, Netflix has deliberately abandoned the advertising model, but this process is now in high demand and is used by many streaming services in the United States of America. Many subscribers have no problem with short commercial breaks if the subscription price drops. All in all, Netflix’s high prices are a big problem.
The basic subscription from Netflix is still quite affordable at €7.99 per month, but it’s not relevant due to the maximum video resolution of 480p and is really only suitable for viewers who only want to stream on their smartphone.
The standard subscription for 12.99 euros is slightly better. Full HD streaming is still sufficient for many subscribers. The premium subscription with 4K streams and the ability to stream four users simultaneously is the most expensive streaming subscription on the market at €17.99.
Until now, it could be argued that the premium subscription was mainly used by subscribers who share an account with friends or family members, and the costs divided by four people are not so high. But the forthcoming moves against account sharing nullify that argument.
The reason for the outflow of users of a well-known video hosting is all of the above factors and, in addition, a certain tendency to complicate the process of using this streaming video service.