New Delhi: In more trouble for Netflix, the platform is facing cancellations of services from long-time subscribers, the media has reported. This comes amid the streaming giant's plans of bringing changes to the platform that include low-cost plans with advertisements as soon as the fourth quarter of 2022. According to a survey data published by The Information, Netflix users who have been with the streaming platform for more than three years accounted for 13 per cent of cancellations in the first quarter of this year, thus explaining why the company's growth has stopped suddenly.
Also read: Netflix To Roll Out Cheaper, Ad-Supported Plan In Q4 2022
According to the report, the information was gathered from an analytics firm named Antenna and the results mentioned that the overall cancellations by Netflix subscribers stood at 3.6 million people in the last quarter, which is a significant increase from the 2.5 million cancellations in the past five quarters. Another reason why the streaming major is struggling is the smaller number of new users registering on the platform.
Netflix to bring ad-supported cheaper plans
Earlier this month, reports suggested that the streaming giant could roll out cheaper ad-supported plans earlier than anticipated. The company had told its employees that it intends to introduce an ad-supported plan by the end of this year and this comes quicker than what was previously indicated.
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It is highly likely that Netflix starts putting a ban on password sharing among its subscribers around the same time, the report added. Netflix had avoided the idea of putting checks on password sharing but last month, it has hinted that the looming change may arrive soon.
The company had hinted at the possible changes after registering a loss in subscribers for the first time in a decade. It had cited factors such as sluggish economic growth, inflation and geopolitical events such as the Russia-Ukraine war for the loss of subscribers. The streaming giant had announced that it ended the first quarter of this year with 221.6 million subscribers and the APAC region, which includes India that added 1.09 million paid members in the region.