High rates and lack of new content is slowing down subscriptions for Netflix

New Ideas in MarketingEssential news for marketers, summarised by YouGov
January 21, 2022, 2:21 AM GMT+0

43% of American adults worry about the amount they spend on streaming services, according to Forrester.

Coupled with the price surge in North America, the bulk season drop approach, and the lack of new content for Q1 2022, the subscription growth rate on Netflix is declining. The company's customer acquisition hasn't recovered to pre-pandemic levels in Q4 2021, according to an executive.

Also, 44% would use streaming services with ads instead of paying more. The weekly episodic release strategy followed by platforms like Disney+ and Hulu helps retain consumers. 51% didn’t cancel a subscription because they don’t want to miss out on the original content.

Netflix is projecting lower acquisition rates for Q1 2022. However, movie premieres like the “Red Notice”, and “Don’t Look Up” help Netflix acquire new consumers, as customers prefer watching premieres on streaming services.

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