Why is Netflix losing its subscribers?
The company is predicted to lose 2 million subscribers By June. However, it lost 970,000 subscribers.
Its stock price also went down by 71%.
Currently Netflix has 220.6 million subscribers worldwide, 74 million for HBO Max, and 87.6 million for Disney+ these later two streamers are in less parts of the world.
Until now, Netflix has made content by incurring huge costs and making content more creative, but now they are cautious and moving strategically.
To mention such films include The Irishman, Red notice, and the recent one The Grey Man (released on Friday) which made by incurring a whopping $200 Million.
The other notable new content is “Stranger” which is being made by incurring $25 million per episode.
Netflix lost Manifest and Lucifer shows as they went to free streamers.
- One reason could be that most of the content on Netflix is made by itself, to do this kind of project it needs huge resources such as a production team, technicians, and a lot of shooting equipment which are a huge costs for the company and they can only be used by Netflix.
- Whereas other streaming sites are associated with production franchises but Netflix is not, It’s driving the subscribers to other streaming sites.
- In India, people would love to watch regional content. Still, Netflix has less to offer the regional content and they are not associated with any Indian production house on large scale.
- In India, there are lots of streaming sites that are offering more regional content at a very minimal price or even free like MX Player, Jio cinema, Alt Balaji, etc.
Initiatives :
- Netflix is planning to introduce the Adds streaming and planning to charge for password sharing.
- It is also planning to enter into the digital gaming market which has huge potential.
Changes that could be made to attract new subscribers?
- Netflix has to normalize the content making which they are planning to do now.
- Netflix has to outsource the content making projects to production houses which will save huge costs for the company.
- Introduce the a few free content on Netflix to attract new people to its platform and monetize eventually by offering custom made content packages based on their content consuming behaviors (As its known for making content images based on viewers likes).
- Introduce more and more regional content.
- To attract Indian subscribers Netflix has to make changes with respect to both Price and content.
Have to wait and watch how Netflix makes its turnaround.
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