For the first time in a decade, Netflix experienced a sharp drop in users

For the first time in a decade, Netflix has seen a sharp decline in subscriptions, which it expected to grow by millions.

BingMag.com For the first time in a decade, Netflix experienced a sharp drop in users

For the first time in a decade, Netflix has seen a sharp decline in subscriptions, which it expected to grow by millions.

Netflix is one of the largest video content streaming platforms in the world and currently has many users. But it seems that this popular platform has been in a very difficult situation in recent months, as it has announced that it has lost more than 200,000 subscribers, and this is the first time in the last ten years that this is the case for We are witnessing this company. It is interesting to know that this happened while Netflix predicted that 2.5 million subscribers would be added to the company's users in the first quarter of this year. Fell (25 to 30%) and lost more than $ 49 billion. Conditions are not good for Netflix at all, as another 2 million users are expected to lose in the second quarter. That's why the CEO announced that he will soon consider a cheaper plan for the users of this platform, which is expected to attract more users, but the problem is that this plan has advertisements because it should be profitable for Netflix as well.

Of course Netflix is currently the largest streaming platform in the world and has more than 222 million active users. This subscription reduction also seems natural, as there are many users who use a shared password to log in and do not actually pay to purchase subscriptions. However, this decline may be a bit unnatural, unprecedented in the last ten years.

One of the reasons why Netflix subscribers have dropped significantly is the increase in the price of its services after It has been two years. Netflix decided to increase the price of its subscriptions in February, but later realized that users did not like it at all and decided to leave the platform. According to the company itself, in the United States and Canada alone, Netflix subscribers fell 600,000 from 75.22 million to 74.58 million, indicating that Netflix should not touch prices at all.

As mentioned, there are many people who share their password with others. According to Netflix, the number of these people reaches 100 million, who are actually families, but this has caused Netflix to not be able to attract subscribers as it should. Of course, the company has said it wants to find a way to prevent this problem.

Cheaper tariffs with ads; Netflix solution for joint increase

BingMag.com For the first time in a decade, Netflix experienced a sharp drop in users

Since Netflix now has a lot of competitors with lower costs They have been able to attract many customers, and it can be predicted that the company's work will be very difficult to continue the competition. Of course, Netflix already has a lot of subscribers, but it can not continue this trend forever. DisneyPlus, for example, wants to offer users a very low-priced advertising tariff later this year that will attract more users.

This new plan actually allows users to subscribe. Buy Netflix at a lower cost, but instead display ads for them so that Netflix can also generate revenue and partially offset this price reduction. It also makes sense because there are a lot of users who want to pay less for a service and in the meantime get a little viewing of the ads.

Netflix because its service in Russia because of the story The country's invasion of Ukraine made it inaccessible, losing 700,000 subscribers. Therefore, it seems that the situation is not going well for it and it must find a way to control it. At the moment, the solution seems to be the same cheap tariff with advertising. The company also plans to broadcast sports competitions soon, something we have never seen before on this platform. But he seems to have to change a series of policies to make money.

Source: GSMArena ( 2 ), The Verge

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