Netflix's survival requires the platform to move from a gateway to a destination. The faster this is done, the better for Netflix, and more importantly, for consumers who will engage with the Netflix world instead of being subscribers who share passwords
Netflix’s loss of 200,000 subscribers in less than 100 days to March 2022 has been surprising and yet, in hindsight, quite inevitable
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“You can have mine”—be it a pencil during a kindergarten exam or one earpiece of a pair of earphones, or even a Netflix password, the tendency to share is innately human. A business model that views sharing as a threat is simply swimming against the current.
Netflix’s loss of 200,000 subscribers in less than 100 days to March 2022 has been surprising and yet, in hindsight, quite inevitable. For over 20 years, this much-vaunted disruptor of the movie industry has played the same game. The decline in subscriber numbers is just another indicator that it is time Netflix recalibrates its business model which is no longer the recipe for success that it once was. Indeed, the growing young population in the so-called emerging markets might well have been prolonging the death of a cracking business model that has ceased to be about customer value.
And now, the fault lines are beginning to show (see Figure 1). An additional 200 million subscribers are expected to leave Netflix in the next three months to July.
Figure 1: Netflix’s cumulative quarterly paid subscriber additions worldwide, 2016-2021