INDIANAPOLIS (WISH) — Netflix has led the streaming front for more than a decade as the largest subscription based streaming service in the country.
For the first time in over 10 years, Netflix lost subscribers in quarter 1 of this year to the tune of over 200,000 subscribers.
General Manager of Circulus Digital Media Nelson Spade gave his insight on what may have caused the setback.
Spade says multiple factors come into play:
- Netflix rolled out new pricing in mid Jan. $15.49 is more than it’s immediate competitors
- Netflix is felt to be overpriced by the tune of $5 per month
- Compared to 3 years ago, 60% of users have 3 or more packages compared to 32%
- CEO Reed Hastings has provided an ad free experience which has changed
This is the first time Netflix has discussed an ad supported platform in 1-2 years. Consumers are interested in ad supported offerings based on other streaming platforms.
- eMarketer projects 40M more AVOD users in the next 3 years
- Tubi, 100% AVOD, record breaking year in 2022
- HBO Max, Disney+, and Peacock rolling out ad supported models
This is an opportunity for Netflix. U.S. AVOD projected spending will triple in 2022 to 22 billion which is up from 8 billion in 2021.
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