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Netflix is seeing a sharp rise in the number of long-term customers cancelling their subscriptions, signaling a new threat to the left-wing streamer’s financial stability, according to a new study.
Consumers who had been Netflix subscribers for more than three years accounted for just 5 percent of total cancelations at the start of 2022, but that figure jumped to 13 percent in the first quarter of 2022. Also in the first quarter, total cancellations spiked to 3.6 million people, compared with around 2.5 million in the previous five quarters.
The results are from a study conducted by the research firm Antenna and provided to the tech news site The Information. Antenna said it drew its data from a panel of 5 million Americans.
“The data help illuminate why Netflix’s subscriber growth stalled suddenly in the first quarter, prompting a big drop in the company’s stock price to its lowest point in several years and undermining investor confidence,” The Information said.
Netflix shares plummeted following last month’s quarterly earnings report showing the streamer lost 200,000 subscribers and expects to lose a whopping 2 million more in the months ahead. The stock fell close to 40 percent following the news and is down a stunning 68 percent so far this year.
Netflix is now facing a shareholder lawsuit accusing executives of misleading the public about the company’s subscriber growth.
Antenna’s data indicate that Netflix customers are reacting to the company’s recent price increases, which saw the cost of the most expensive package rise to $20 a month.
“Consumers vote with their wallets on a monthly basis, and now there are just more viable candidates on the ballot,” Brendan Brady, media and entertainment lead at Antenna, told The Information.
Antenna’s data also show that for the first four months of 2022, Paramount+, Peacock, and Disney+ were the most popular options among new subscribers. All three are less expensive than Netflix.
As Breitbart News reported, Netflix’s bloodbath continued this week as the streamer laid off around 150 employees as part of its ongoing efforts to cut spending amid its catastrophic subscriber forecast. The company is implementing austerity measures intended to reverse years of profligate borrowing and spending. In some cases,
Netflix has embraced far-left, woke programming for years, including a production deal with former President Barack Obama and Michelle Obama. Company executives are among Hollywood’s most loyal Democratic donors, supporting left-wing politicians including Joe Biden, Hillary Clinton, California Gov. Gavin Newsom (D), and radical leftist Los Angeles District Attorney George Gascon (D).