Netflix Sees 3.6 Million Service Cancellations In US In Q1

San Francisco: Global OTT platform Netflix has accepted that it is rapidly losing its paid subscribers, and according to data analytics provider Antenna the subscription platform actually saw 3.6 million cancellations in the US, its most matured market, in the first quarter (Q1) of 2022. The quarterly loss this year is over one million more than what Netflix faced in both Q1 2021 and Q4 2021. By the end of March, Netflix’s active monthly churn rate was 3.3 per cent.Also Read – China Hopes US President Biden’s Visit To Asia Not Aimed At Beijing

“Data indicates that Netflix’s active monthly churn rate increased +0.95p points month-over-month in January. By the end of March 2022, Netflix’s active monthly churn rate was 3.3 per cent,” the US-based analytics company said in a blog post. According to Antenna’s report, the last time a similar spike in Netflix churn was seen in an isolated incident in September 2020, when the service released the film Cuties to much controversy (active monthly churn reached 3.6 per cent during that period). Also Read – Alia Bhatt is Nervous as She Begins Shoot of First Hollywood Project: ‘Feels Like Newcomer’

In the past six quarters, Netflix’s “Gross Additions” have remained fairly stable, ranging from 2.2 million to 2.9 million. The company raised prices on all of its plan tiers domestically in January 2022, which led to a jump in cancellations, said the report. Netflix is now exploring lower-priced, ad-supported plans to reignite its subscriber growth. Also Read – Google-Led Internet Giants Behind ‘Biggest Data Breach Ever Recorded’: Report

“As a whole, Netflix’s performance this quarter suggests increased price sensitivity among its subscriber base, likely heightened by the abundance of consumer choice and proliferation of other services,” news agency IANS quoted Brendan Brady, Media and Entertainment Lead as saying,

Netflix is fast losing long-term subscribers — who have been with the streaming service for more than three years — further adding to its woes as the company faces stalled growth amid revenue slowdown. Amid slow revenue growth, Netflix has laid off nearly 150 employees, primarily in the US.