Netflix Is Even Losing Long-Term Subscribers As Stock Continues To Tank

gamerant.com:

Netflix is enduring a tough time as the once dominating force in streaming has witnessed the rise of growing competition from all fronts. It’s no surprise Netflix can’t grow like it used to and that some customers are leaving, however, a new report suggests long-time subscribers may be among the most painful to see heading out the door.

A month ago, back in April, Netflix disclosed in a letter to shareholders it had lost more subscribers than it had gained for the first time in a decade, also warning investors of the projected loss of another 2 million paying users in the second quarter of 2022. The news sent Netflix stock spiralling ever since, now down to $183.48 per share when the market closed on Thursday from the all-time high of $690.31 it reached last October. On a year-to-date basis, the overall picture doesn’t look much better given that in May 2021 Netflix's stock was hovering near the $500 mark.

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So what exactly is to blame for such a steep decline? Well, according to The Information, the data set pieced from American subscribers points to 3.6 million users canceling their memberships this past quarter, out of which 13% were customers whose subscriptions dated back to at least 3 years. The numbers represent what appears to be a growing trend, that Netflix cancellations contain a rising number of long-time customers, instead of the more desirable outflow of newcomers the company has come to expect.

For comparison’s sake, the data collected by analytics firm Antenna indicates that in Q2 2021 70% of cancellations were from new users (less than a year), while the last report that triggered the company’s current crisis saw that share drop to 60%. Netflix's current downtrend