Netflix, in the relentless drive to keep shareholders happy, has spent the past year looking for ways to squeeze more money out of streaming. This has taken several forms. The company has cracked down on password sharing. It’s also launched a new ad-supported tier in a bid to bring in more paying customers. Neither has worked, it seems.
Netflix slows down
The streaming platform is expected to announce its financial performance later this week. Part of that announcement will be the number of new subscribers to the service. And, according to reports, that number is at its lowest point since 2014.
While not official, Netflix is expected to announce some 4.5 million new subscribers gained over the October to December 2022 period. You’d think a number in the millions would be worth celebrating but it’s the wrong amount in the millions, apparently. The streaming platform saw 8.3 million new subscribers sign up over the same period in 2021.
Which suggests a few things. Firstly, the high the company may have enjoyed in the midst of the pandemic (when everyone was inside) is wearing off. Secondly, the streaming field has become increasingly crowded. Everyone and his cousin has a streaming platform now but Disney+ is the animated gorilla in the room. The relatively new offering has experienced explosive growth and those users have to come from somewhere.
The relatively low number of new users and slowing growth will have an effect on Netflix as a whole. The number of new series is expected to drop across the board in 2023. The streaming company will be part of that, being more selective about what it funds and keeps on the air.