Netflix never saw a loss in its subscriber count till 2021. The brand value of Netflix has always supported it and people continued to move towards this OTT platform. But what is happening with Netflix in 2022 has never happened to this company before. Netflix lost 2 lakh paid subscribers in the first quarter of 2022. This loss had worried Netflix. But now the figures that Netflix has released in the second quarter are the biggest setback for this OTT giant so far. Netflix has lost 970,000 subscribers in the second quarter of 2022. Netflix is worried that what is the reason for this, but is this trouble only for Netflix..? Is the indifference of the subscribers only bothering this international OTT giant or is it an emerging new concern for the world of OTT that has sprung up in the Corona period. Let us try to understand it with the help of some facts.
The reason that has become the trouble of Netflix
Life back on track – People were locked in their homes during Corona, and there was nothing new left on TV as the shooting stopped. In such a situation, everyone turned to mobile screens for entertainment and OTT platforms were ready to welcome them. This disaster proved to be an opportunity for streaming platforms like Netflix, Amazon Prime. But now the car of life and work has started running again, offices have opened, people are getting busy again. In such a situation, busyness can also be a big reason behind this absurdity of people.
Growing Players in the Market – In the world of OTT, Netflix was running alone for a long time at the international level. After Netflix, there are great shows, their brand value is amazing. Before Corona, he did not have players in this market. But now an entire army of OTT streaming platforms has joined. That is, after the users, now there are many options.
Netflix inflation Netflix subscriptions are very expensive. While at the same time many more platforms bringing new content are offering subscription in multiple layers, that too at a low cost.
Password Sharing – This problem is coming to the fore due to the expensive subscription of Netflix. Many people used to buy expensive subscription and share it with friends and family. The streaming platform is making a lot of efforts to add these password share partners as users and that is why they have also taken strict action towards it.
Global economic recession- There is a period of economic recession in the whole world at this time. Is America and is Europe.. People all over the world are facing inflation and economic hit. In such a situation, people engaged in meeting the needs are the first to cut their ‘extra expense’. It is said that what does a person need to live? Roti, Kapda, Makan and Netflix…! What doesn’t fit in this sentence is Netflix.
Ad-Based Netflix Microsoft Alliance
Netflix CEO Reed Hasting once announced that he would never bring ads on his platform. But the aftershocks of two quarters have forced him to reverse his statement. Netflix has now announced to bring advertisements to increase its revenue. Netflix has announced an advertising partnership with Microsoft. A steadily declining user base and Q1 results have forced Netflix to switch to ad subscriptions.
This worry of losing paid subscribers is not of Netflix alone. Actually, this situation is like an alarm for the entire OTT industry, which is ringing. During the boom of OTT, theaters and multiplex owners also faced similar situations two years ago. Questions were also raised in front of him that now people will never come to the theaters to watch movies…? Will the habit of theaters be lost now? But now the tables have turned, the dice are rolling. Seeing the increasing audience towards theaters, OTT platforms are worried whether you will come back to us… This question is big, the answer to which is now only with the audience.
FIRST PUBLISHED : July 23, 2022, 16:58 IST