Shrinking subscriptions of Netflix, Amazon and Disney+ had many cancelled subscriptions in the last few months. This is “sobering” news for the industry because the streaming platforms are facing losses due to the cancelled subscriptions. The streaming platforms saw a boom during the coronavirus pandemic because most people were stuck at homes and had no other entertainment options.
The number of people subscribing to one of these giant streaming platforms in the UK and the USA has fallen. More than 1.5 million people have cancelled their memberships. Market research firm Kantar has revealed that more than half a million cancellations have been due to the high cost of living crisis. The households are deprioritizing the streaming services as they are trying to meet their ends.
Millions of Canceled Subscriptions Happened In The First Quarter Of 2022
A total of 1.51 million cancellations have been made in the first quarter of 2022. About 58% of British have at least one paid streaming service. Most people have subscribed to Netflix, Amazon Prime Video or Disney+. During the COVID-19 pandemic, the government enforced lockdowns. This led to the surge in subscriptions to platforms, as more people got stuck at home.
However, according to the latest reports, the proportion of consumers that are planning to cancel subscriptions is increasing. The cancellations are due to tightening budgets. About 29% to 38% of subscribers in the last three months of 2021 have cancelled their subscriptions. Homeowners have stated that one of the primary reasons for cancellations is that they want to save money.
Bad news for the streaming industry
Kantar’s Worldpanel Division global insight director, Dominic Sunnebo, has revealed that according to the latest market research the streaming platforms have faced a lot of losses. This is a “sobering” for the streaming industry.
The evidence from these findings has suggested that British households are looking for ways to save money. New marketing and content acquisition strategies are likely to be made to avoid further churn.
Most Viewed Series On Amazon Prime And Netflix
The report also suggested that Amazon Prime’s thriller Reacher, starring Alan Ritchson and Willa Fitzgerald, was one of the most-streamed shows between January and March 2022. Ozark and Inventing Anna on Netflix were also big hits.
The “churn” rates increased across all the streaming services. There has been a “clear difference” in the number of cancellations other than the Netflix and Amazon streaming platforms. Disney, Now TV, Discovery+ and BritBox have seen significant jumps in the churn rates quarter-on-quarter.”
Advertising could help with the revenue growth
New subscriptions have been at the lowest rate ever at the start of 2022. Netflix has added around 18.2 million members last year. Half of the number who subscribed in 2020 are watching their favourite series and sticking to the platform.
Netflix investors have hoped that they uptick in subscriptions. This has sent the company’s share price down by almost 20%.
The company has admitted that the competition from Disney+, Apple TV, Amazon Prime and HBO is advertising and is taking an obvious route” to drive revenue growth.