Those who believe that the financial situation of Netflix can not deteriorate, should prepare for the next rough news. A new study shows that the service continues to lose subscribers. According to an Antenna report published by The Information, “new data shows that people who have been Netflix subscribers for more than three years accounted for a significantly higher cancellation rate in the first quarter than two years earlier.”
Netflix has already been killed by the impression that its growth may be over. Although it is one of the largest streaming services in the world, it has strong competition, especially from Amazon and Disney. New competitors, such as Apple and HBO, crave market share. The average family has four streaming services. Due to the possible recession and the opening of cinemas, this may be reduced.
Netflix has 222 million subscribers, but that number could decline during the quarter, based on its own forecasts. When the company released its latest revenue, management wrote: “Our plan is to accelerate viewing and revenue growth while continuing to improve all aspects of Netflix – in particular the quality of our programs and the recommendations that our members value most. “Every streaming service has similar goals.
It would seem that Netflix shares can no longer fall. Once a Wall Street darling, Netflix shares have fallen more than 75% this year. As technology sales grow, stocks may continue to fall at unimaginable rates.