Should you unsubscribe from Netflix?

It is not being a good week for Netflix. Last Tuesday, the streaming service published its figures for the last quarter, where a massive drop of 200,000 users was confirmed. The news was accompanied by a sharp drop in the company’s shares on the stock market, and we keep reading pessimistic forecasts that seem to indicate that this has only just begun.

Serious problems for Netflix

When Netflix arrived in Spain, users felt that we were paying for a single platform and we had everything. Netflix’s own productions hardly existed, and we all talked about the benefits of the service.

But little by little, Netflix began to have more and more competition. Warner and Disney had many productions on Netflix, but given the success of Reed Hastings’ company, it would be absurd not to replicate the strategy. After HBO —later HBO Max— and Disney+ established themselves internationally, many users began to see the netflix weaknesses.

What is Netflix wrong so that consumers prefer their competition?

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According to estimates, Netflix should have grown by 2.5 million users in the first quarter of 2022. However, its investors have raised their hands to their heads by publishing that not only have they not grown, but they have lost a good Users quantity.

A few months ago, Netflix launched a few trial balloons announcing that it was going to remove account sharing. Surely, this is because they were already imagining a massive leak of users from their platform. Recently, the Los Gatos company claims that there are more than 100 million shared Netflix accounts, making it difficult to continue growth in a market that does not pay for more subscriptions. However, they may need to do some more self-criticism:

Its price is not so competitive

Netflix has not stopped increasing its price in recent years. It is even ridiculous that you can only view content in 4K by paying for the most expensive membership – which in turn is the one that everyone who is going to share the account with more people buys. 17.99 euros per month is an excessive price if we take into account that Disney + is worth 69.99 euros per year and HBO Max is worth just half: 8.99 euros per month.

Netflix content is no longer up to par

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Why blame your clients for your failure when it is obvious that you have followed a bad strategy? It is obvious that Netflix does not have the production capacity of Warner Bros or Disney, which have facilities and industrial estates full of props. But the idea of ​​doing a couple of seasons per series is not brilliant. Netflix lives by selling series that are successful for a couple of months then fall completely into oblivion. If a long-term approachit is possible that the client was more attached to the platform.

On the other hand, releasing an entire season of a new series all at once doesn’t seem like a very smart idea. Why pay for another month when I’ve already seen everything I wanted to see at once?

Netflix would also have to look at its fear of cancellation culture. Making scripts based on what Big Data and algorithms say seemed promising, but definitely, neural networks and artificial intelligence have it quite complicated with the seventh art.

The customer comes first

If the solution to all this is going to be raise prices further and prevent users from sharing accounts, most likely the solution is worse than the problem. Treating customers as part of the problem with the platform having more important issues to resolve will result in a greater exodus of users to the competition.

The entry Should you unsubscribe from Netflix? was first published in The Output.

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