Netflix has lost 2 million customers

What do we got here? 
 

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Netflix reported a net loss of 200,000 paid subscribers in the first quarter, while analysts on average were forecasting 2.5 million net additions, according to FactSet, which was what Netflix executives had forecast. The decline arrived after a price increase in the U.S. and Canada, where the company lost 640,000 subscribers, and executives on Tuesday forecast a loss of 2 million subscribers in the current quarter, while analysts were expecting net adds of 2.55 million.

Source Marketwatch

Many people I have spoken with is saying that Netflix going full WOKE therefore they closed their accounts. 

Is Netflix going to die out soon? 

  On 4/20/2022 at 12:18 PM, cern said:

Many people I have spoken with is saying that Netflix going full WOKE therefore they closed their accounts. 

More likely: the cost of living increase therefore customers are culling non-essentials, returning to office working so less home-streamy-time, and (certainly in the UK) putting the price up

Maybe Disney+ has taken some of their market share. Most people I know have D+ and likely to keep it because it’s really good for keeping youngsters entertained, with that and bbc iPlayer the adults can usually find something to watch. As mcbpete says maybe Netflix isn’t seen as essential.

It's gone when I finish this Seinfeld run

  On 4/20/2022 at 12:28 PM, mcbpete said:

More likely: the cost of living increase therefore customers are culling non-essentials, returning to office working so less home-streamy-time, and (certainly in the UK) putting the price up

So it has nothing to do with Netflix sending more and more crap? 

I’ll go back to them to finish Ozark and Better Call Saul but beyond that can’t see myself staying. Kind of done and dusted with all the good stuff on Netflix by now.

  On 4/20/2022 at 12:43 PM, cern said:

So it has nothing to do with Netflix sending more and more crap? 

If that was the case the whole internet would've been long deleted and fired over a rainbow 

My stocks are sad. They were VERY happy about 7-8 months.

Actually did my capstone project for MBA on the good 'ol Netflix. Think part of this is due to a massive uptick in subscribers at the outset of the pandemic- like their Q1/Q2 2020 numbers were through the roof. So, they gained way more than expected, then tail end of 2021 they started seeing declines for some of the reasons above: Disney+ and other competitors entering thearket (e.g., Peacock, Apple+), tightening economy meaning people will elect to drop unessential services (or choose between say HBO Max and Netflix). Sure the uptick in prices aren't helping. 

They are pushing hard to try and appeal to global markets (where they haven't saturated yet) but oof - 2 millions lost subscribers is pretty tough pill to swallow. 

TLDR: massive uptick in subscribers during pandemic means artificially inflated numbers coupled with market saturation in US, competition from others, tightening economy and charging more and need to capture larger global market share probably explains this

  On 4/20/2022 at 3:38 PM, T3551ER said:

Actually did my capstone project for MBA on the good 'ol Netflix. Think part of this is due to a massive uptick in subscribers at the outset of the pandemic- like their Q1/Q2 2020 numbers were through the roof. So, they gained way more than expected, then tail end of 2021 they started seeing declines for some of the reasons above: Disney+ and other competitors entering thearket (e.g., Peacock, Apple+), tightening economy meaning people will elect to drop unessential services (or choose between say HBO Max and Netflix). Sure the uptick in prices aren't helping. 

They are pushing hard to try and appeal to global markets (where they haven't saturated yet) but oof - 2 millions lost subscribers is pretty tough pill to swallow. 

TLDR: massive uptick in subscribers during pandemic means artificially inflated numbers coupled with market saturation in US, competition from others, tightening economy and charging more and need to capture larger global market share probably explains this

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20% drop in share price since the announcement right?

Netflix are also claiming the sanctions against Russian lost them 700k subscribers... so with inflation cutting the pursue strings, and broadcasters restricting their IP from streamers... 

Netflix have announced they'll be supporting an ads tier in the next couple of years. Their platform will be attractive to advertisers, not as many restrictions as broadcasters, they'll have flexibility with content, and a shit load of 1st party data they'll try and leverage; if they commit. It will then be the balancing act of stopping churn, keeping lower tiered subscribers happy. They'll probably work a variable ad load model, rather than slapping prerolls everywhere. 

they also artificially removed streaming quality only to sell it back for a higher price something no other streaming service does.

I had to upgrade to HD only to watch movies without compression artifacts on my phone.

But for what? I can buy the whole last season of Better Call Saul for half the price on Amazon to what I am paying now for Netflix. 

+ Better Call Saul is streched over 2 month so I actually have to pay 4x times than the last season costs on amazon. 

that 2 million includes 700,000 from russia. i think because netflix is easy to cancel it's easy for people to take a few months off or whatever and check back in later once they are not drowning in financial problems. 

  On 4/20/2022 at 4:02 PM, Shimon_Shimon said:

20% drop in share price since the announcement right?

Netflix are also claiming the sanctions against Russian lost them 700k subscribers... so with inflation cutting the pursue strings, and broadcasters restricting their IP from streamers... 

Netflix have announced they'll be supporting an ads tier in the next couple of years. Their platform will be attractive to advertisers, not as many restrictions as broadcasters, they'll have flexibility with content, and a shit load of 1st party data they'll try and leverage; if they commit. It will then be the balancing act of stopping churn, keeping lower tiered subscribers happy. They'll probably work a variable ad load model, rather than slapping prerolls everywhere. 

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Yeah think that's right (20%). I haven't followed them as closely since finishing up because grad school trauma (jk ... mostly) but still fascinated by them. Iirc correctly they also refused to stream Russian propaganda channels at the outset of the war losing them a ton of subscribers.

Adding Ad tiers is a terrible idea, and totally contrary to their mission statement. It's actually one of the reasons I still subscribe - its literally the only streaming service that has 0 ads for anything (I mean, not even ads for other shows). It's the reason I cut the cord almost 2 decades ago. 

Oof. I mean, I get it, they are a business. And this is the predominant model for many streaming options. But still. Oof. 

Also with @o00o here - the artifial downgrade to upgrade bait and switch is dirty. 

Other thing Netflix does poorly: their original show model is to cover all up front production costs and then a graduated payment model whereby after year three, payments go through the roof to creators/actors/etc. in a series. That's why so few shows on Netlfix get past S3. Which is fucking dumb. Figure out a better model and come back at me w more Santa Clarita Diet pls? K thnx bye. 

^ I'm not anti ads, but I'm sympathetic to the concern about Netflix's impending volte-face on AVOD. Once they suckle on the teat of ad revenue, it will fundamentally change the product development. 

Like you, I cut the cord a long time ago. I've only got access to Prime at the moment - I killed Netflix at the start of the year, and I never had it for more than a couple of months each time - and I'd like to move off of Amazon products as much as I can this year. 

I've been buying DVD/Blu-rays of classic shows and films off of eBay the past 12 months, and adding to my instance of Plex. That's how I do most of my viewing. 

In other Netflix news: https://www.bbc.com/news/business-61153252

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Netflix has hinted it will crack down on households sharing passwords as it seeks to sign up new members following a sharp fall in subscribers.

MUBI is the way.

Netflix is crashing pretty hard, not been worth the price of admission for years and years imo. Quality of original series and movies are abysmal across the board except for the odd outlier/Oscar bait, but I mostly don't bother with it anymore, so much garbage to sift through. About 90% of the new shows I've started watching in the last few years I've stopped watching after a couple of episodes, and the ones I finished mostly weren't worth it. So much time wasted watching Netflix junk food tv.

  On 4/20/2022 at 5:37 PM, Shimon_Shimon said:

^ I'm not anti ads, but I'm sympathetic to the concern about Netflix's impending volte-face on AVOD. Once they suckle on the teat of ad revenue, it will fundamentally change the product development. 

Like you, I cut the cord a long time ago. I've only got access to Prime at the moment - I killed Netflix at the start of the year, and I never had it for more than a couple of months each time - and I'd like to move off of Amazon products as much as I can this year. 

I've been buying DVD/Blu-rays of classic shows and films off of eBay the past 12 months, and adding to my instance of Plex. That's how I do most of my viewing. 

In other Netflix news: https://www.bbc.com/news/business-61153252

 

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Yeah... for so long Netlfix was kind of this lone wolf, way ahead of the pack in terms of evolving strategy to stay a few steps ahead. Everything happening now just seems like such a step backward .... I mean, it is what it is. 

It's funny, I've been finding myself going back to using Plex more and more lately. Out of curiosity: what do you use/how do you rip your discs and whatnot? Do you find you have space concerns? (I have a few seasons of various shows and they just take up so much damn space)

  On 4/20/2022 at 6:12 PM, Silent Member said:

So much time spent wasted watching Netflix junk food tv
 

Yeah I’ve spent exorbitant amounts of time just flicking through the choice thumbnails (there’s probably a word for them which I don’t know ) just like a brain dead zombie and not actually clicking on anything. Odd behaviour for me. Especially with their film selection. 

  On 4/20/2022 at 6:13 PM, T3551ER said:

It's funny, I've been finding myself going back to using Plex more and more lately. Out of curiosity: what do you use/how do you rip your discs and whatnot? Do you find you have space concerns? (I have a few seasons of various shows and they just take up so much damn space)

Sure, I'll DM and avoid cluttering up the thread with Plex. 

Why don't you guys get with the times and watch TikyToks?

TikTok is quite impressive if you train the algorithm correctly 

  On 4/20/2022 at 12:28 PM, mcbpete said:

More likely: the cost of living increase therefore customers are culling non-essentials, returning to office working so less home-streamy-time, and (certainly in the UK) putting the price up

Don't forget - charging extra for HD and even more for 4K, and replacing quality content with utter dross (how many fucking "reality" shows does the world need?).

  On 4/20/2022 at 7:05 PM, o00o said:

TikTok is quite impressive if you train the algorithm correctly 

what have you found? or better, how do you train it?