That’s the number of subscribers Netflix lost just in the United States in between April and July. It was the first time the company had lost a huge chunk of Domestic subscribers since its inception 12 years ago.
And compared to its projected gain of 5 million subscribers worldwide, it amassed only about a half at 2.7 Million.
Netflix CEO Reed Hastings blamed it on the lackluster content and rise in subscription prices. Also, Media houses vying for a share in the streaming market, which has been mostly dominated by Netflix until now has cost heavily on Netflix. Disney, Warner Media, and NBC Universal are racing to create the first Netflix Killer.
Earlier in January, the streaming giant announced that it was going to increase its subscription rates by somewhere around 13 to 15 percent which must have led to quite a significant number of its subscribers ditch it.
So many shows have been pulled off from Netflix to their own broadcaster’s streaming platform. Hit shows such as Friends will be pulled off from Netflix in 2020, The Office will leave in 2021 to its rival platforms.
On top of streaming rivalries, there were also rumors of Netflix trying to monetize its platform by introducing ads. Even if there had been plans to show ads to its customers, it would be a grave mistake for Netflix now to bake them into its content. So Netflix faces a unique problem— It needs to increase its revenue streams by increasing subscription rates or running ads, and at the same time can’t risk losing its existing subscribers, who don’t want to pay more and HATE ads.
Yeah, Netflix can at times sneakily place contextual ads in its original series, but even the slightest tinge of Ads will make its customers furious. After all, that’s the exact reason they pay for it in the first place—to get premium content without ads. We simply hate ads. End of conversation.
Speaking of rival platforms, Disney is going to charge $6.99 a month and boasts a huge catalog of fan-favorite movies and shows. Not to forget, it owns Marvel Studios and Star Wars franchise. Ever since it bought Rupert Murdoch’s 21st Century Fox Entertainment for $71.3 Billion, Disney has been looking forward to reaping its investment.
Apple, who subsequently entered the Streaming war late, has already inked deals with Hollywood heavyweights such as Steven Spielberg, Ophrah Winfrey, and Reese Witherspoon. It is going to debut this fall. Apple is spending up to $15 million per episode on the series See starring Jason Momoa.
Apparently, Netflix’s dominance has resulted in other networks scrambling to set up their own streaming platforms. And as a result, some of the best cult-hit classic TV shows and movies are exiting the platform. And with Netflix Originals not making much of an impact, the Streaming giant is showing initial signs of struggle.