Why Netflix is having a tough time.
In the past decade, Netflix was dominating the streaming market but now the streaming market is changing fast and new players are coming up with their own content.
Netflix was having a target of adding 2 million new subscribers in Q1 2022 but after their recent earning report it has shown that they lost 200,000 subscribers already. and market response was as brutal as one may expect, Netflix share dropped 25% in a single day.
Because of losing subscribers left and right, Netflix finally came up with a plan to provide Netflix service cheaper with ads. Remember this is the same Netflix that strongly denied having advertising on its platform ever and was tagged as a superior service in the streaming market.
The main reason for this decline is there are many new players that have come into the streaming market. Earlier Netflix has content from HBO, Disney, and many more major productions but now everything has changed. Every major production is pulling content from Netflix and showing that content on their streaming platform. And now Netflix does not have any option other than boosting its production capacity to produce more and more content quickly.
Such examples of highly popular content that got pulled from Netflix are
“Friends” is now available on HBO Max.
“The Office” is on Peacock
“All Disney content” is now available on Disney+
Netflix also got into video games a year ago because only the content is not good enough to retain customers on their platform.
Netflix is really trying hard to get back on its feet by producing more and more originals and also trying to crack down the password sharing because it's eating up their new subscribers.
Only time will come if Netflix is going to stay strong in this journey now that it has got tough competition from very big players such as Amazon Prime Video, Disney+, and more.