Netflix is seeing an increase in the number of loyal customers canceling their subscriptions, suggesting a new threat to the left-wing streamer’s financial stability, according to a new study.
At the beginning of 2022, only 5 percent of total cancellations were consumers who have been subscribed to Netflix for more than three years, while that number rose to 13 percent in the first quarter of 2022. Cancellations rose to 3.6. more than approximately 2.5 million people in the previous five quarters.
The results of the study, led by research firm Antenna, were published on the tech news site The Information. The antenna claims to receive data from a group of 5 million Americans.
“This data helps explain why Netflix’s subscriber growth stalled abruptly in the first quarter, causing the company’s stock price to drop to a multi-year low, and undermining investor confidence,” the report said.
Shares of Netflix fell last month after quarterly earnings report that showed the broadcaster lost 200,000 subscribers and is expected to lose another 2 million in the coming months. Shares are down nearly 40 percent after the news and are down a staggering 68 percent this year.
Netflix is now facing legal action from shareholders, who accused executives of misleading the public about the company’s subscriber growth.
Antenna data shows Netflix customers are reacting to the company’s recent price hike, which puts the most expensive package up to $20 a month.
“Consumers vote with their wallets every month, and now there are more suitable candidates on the ballot,” Brendan Brady, Antenna’s head of media and entertainment, told The Information.
Antenna data also shows that Paramount+, Peacock and Disney+ will be the most popular options with new subscribers in the first four months of 2022. All three are cheaper than Netflix.
The Netflix carnage continued this week as the broadcaster laid off about 150 employees as part of its ongoing efforts to cut costs in a disastrous view of subscribers, according to Breitbart News. The company has been taking austerity measures to reverse years of wasteful borrowing and spending. at another time,
Netflix has been programming the awakening far left for years, including a production deal with former Presidents Barack Obama and Michelle Obama. The company’s executives are among Hollywood’s most staunch Democratic donors and support left-wing politicians such as Joe Biden, Hillary Clinton, California Gov. Gavin Newsom (D) and left-wing Los Angeles District Attorney George Gascon (D).
Source: Breitbart
