It looks like the king of streaming is in a tough spot as streaming giant Netflix struggles to stay at the top.
BBC confirms that Netflix lost almost a million subscribers between April and July as more and more people are deciding to quit the streaming service. Netflix reported its first subscriber loss since April 2011, which was reportedly followed by several job cuts and a big drop in its share price.
BBC further confirms that the subscriber losses reported recently were the biggest in Netflix history. The US and Canada saw the highest number of cancellations in the last three months, followed by Europe.
Netflix has continued to lose members for two quarters, which is a major concern for the streaming giant. When asked what’s keeping them afloat, Netflix boss Reed Hastings said: “If there was a single thing, we might say ‘Stranger Things.'”
Guy Bisson, executive director at Ampere Analysis, revealed that it was “inevitable” that Netflix would eventually lose its spot as the king of streaming.
“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.
Netflix faces strong competition from other streaming services such as Apple TV, HBO Max, Amazon Prime, and Disney+, and its move to make its service more expensive may have also turned off some customers. The streaming giant blamed password sharing, the uptick in connected TV adoption, and slower than usual economic growth, among other things, for why there’s a decline in their results. They said they would crack down on account sharing and add a lower-priced tier that supports advertising to help pump up its subscriber base, which is nearly 221 million global subscribers overall.
