It was recently reported that Netflix is facing a dramatic slowdown in worldwide growth. In the U.S. Netflix faced its first quarterly drop since 2011. These drops are raising many concerns about just how much people are willing to pay for streaming services like Netflix and others.
During the April-June period, the company lost 126,000 subscribers in the U.S. mainly due to the recent price hike. Netflix’s most popular plan saw an increase from $11 a month to $13. Netflix forecasted an increase of up to 5 million new subscribers but only received 2.7 million which was far below their expectations.
One individual raised concerns that people may not be getting the best value for their money!
Most people have multiple streaming services to meet all their streaming needs. But just like a gym membership, people are going to be willing to drop services that they no longer deem necessary.
What are other companies saying?
Not much! But they are keeping a close eye on how Netflix handles this loss. They are also starting to prepare to compete with Netflix!
One such service that is taking note is Disney Plus. Disney Plus is expected to be released later this year in November and already has a cheaper subscription price. Disney Plus plans start at only $8/month through their video library is smaller than Netflix. Other services like Hulu have recently cut their prices from $8 to $6/month.
One thing that can be stated is that cord cutters are looking for the cheapest option since making the switch from cable to streaming. Companies are highly aware of this and their pricing is starting to show.
Pricing is not the only factor that users look for when it comes to streaming. Companies that offer exclusive shows and have deep libraries tend to have a higher user count. Sadly, for Netflix, they are losing two of their most popular shows. The TV shows “Friends” and “The Office” will be departing the Netflix service over the next few months. These two shows are headed to rival companies.
Should other companies be worried over Netflix’s loss?
No. The loss Netflix is currently facing should only be temporary. They will need to make changes to their service to meet the users’ needs but they should come out on top.
Other companies should take this time to rethink their services so that they can compete in the streaming market. Streaming services and requests are on the rise and will continue to rise as more and more people make the switch from cable to streaming.
Over the next year, it will be worth watching to see which companies make their mark in the streaming entertainment industry. With new services expected to hit the market over the next few months, people should expect streaming deals.
Are you a current Netflix user? Let us know how you feel about their loss and price increase! We are curious to see how users are feeling towards this and what expectations you may have!