The fall in users of Netflix is a very important concern for the movie and series streaming service, but its managers must digest an even more alarming fact: the age of lost customers. According to The Information, in the last two years the number of long-time subscribers who have decided to unsubscribe has grown significantly .
We are talking about people who have left Netflix after being part of the platform for more than three years. According to data provided by Antenna, a renowned research firm, 13% of the 3.6 million cancellations registered in the first quarter of 2022 were from clients that were part of said group.
This is undoubtedly a worrying fact, since it makes more evident a trend that has been registered since the first quarter of 2020. At that time, only 5% of cancellations corresponded to users with more than three years on Netflix; however, by Q1 2021 they already represented 10% of the accounts removed.
This speaks clearly that the streaming platform is having a hard time keeping the interest of its oldest customers; which can also translate into a loss of loyalty towards your brand or proposal.
Another important point to keep in mind is that cancellations for the first quarter of 2022 were considerably higher than those reported by Netflix on previous occasions. Let's keep in mind that from Q4 2020 to the same period of 2021, inclusive, the average number of subscriptions ended was 2.5 million each.
The age of users who cancel their subscription to Netflix | Credit: The Information
Netflix loses old customers and it's not just for content, but for economy
According to specialists, the economy has played a key role in the increase in Netflix cancellations among its old audience. Price increases, coupled with the emergence of a growing number of competitors with cheaper subscriptions and more interesting content on offer, have been crucial in this story. “Consumers vote monthly with their wallets and now there are more viable candidates on the ballot,” said Brendan Brady, of Antenna.
But if Netflix can rescue something positive, within the negative, it is that the percentage of cancellations among subscribers with less than a year of participation in the platform has fallen. Just as in the first quarter of 2020 they represented 69% of a total of 2.1 million unsubscribed subscriptions, in the same period of 2022 they accounted for 60% of the 3.6 million withdrawals, even though this The latter represents a larger number of users.
For now, the movie and series streaming service has outlined several plans to try to lessen the blow due to the drop in users. One of the biggest involves the launch of a cheaper plan that will include ads; it was only expected within two years, but the company would have decided to step on the accelerator and introduce it in the final quarter of 2022.
Separately, Netflix will also experiment with streaming live events, which will initially be used for unscripted shows and comedy specials. While the company also plans to change its original content production strategy, focusing on the launch of fewer titles, but of higher quality.
