Will Netflix Bounce Back from Subscriber Lost?
Netflix is a giant movie streaming service in the world. This service offers a lot of high quality movies from different genre and get used by worldwide active users. As we know, Netflix successfully adopted subscription business models. However, the problem begins when password-sharing are misused by their loyal users. Refer to this accident, they will rolling out related guidelines and subscribers lost will be predicted. So, will netflix bounce back from subscriber lost?
Let’s Get Deep into This News!
Netflix reported its quarterly earnings three days ago. They warn investors about subscriber loss when cracking down on password-sharing to pay up. They plan to set up their own accounts or through paid-sharing plans. The results, slowdown is seeing. In the first quarter of 2023, 1.75 million subscribers increased but less than investors expected.
How Netflix Lost Their Subscribers?
This big movie streaming cancel reaction in each market when they announce their guideline about paid-sharing. They point to 450,000 subscribers’s quarterly loss in Latin America as evidence of the announcement. Some active borrowers decide to stop watching because they don’t have any willingness to give full payment for the update guidelines.
Is The New Guidelines Worth Enough?
However, some borrowers start to activate their own accounts according to this case. In addition, existing members also obey the rules by adding an extra member account to keep enjoying Netflix movies. This increasing subscribers are shown in Canada. The paid sharing was implemented in early years and the results are surprisingly bouncing back. Now, the membership reaches 100,000 subscribers and successfully accelerates the revenue growth. So, it’s quite worth it for some regions, but not for all.
So, What are The Win-Win Solutions?
As a big subscription company, Netflix provides the best solutions for their loyal users. This company provides ad-free plans to its ad-supported tier. It’s kind of a win-win solution because loyal members will pay a lower price for Netflix subscription. As result, engagement on the ads tier has exceeded the company’s initial expectations. It’s both incremental revenue and profit for the subscription business models.
New Strategy Adopted, Is There One Omitted?
Netflix already adopted a new subscription business strategy, thus it’s winding down the old one. What is that? Absolutely, the streamer’s legacy mail order will be removed from Netflix’s DVD rental service operation this year. The reason for the omitted one is no longer relevant to the current business. As a result, revenue is not significantly growing.
Will Netflix Bounce Back from Subscriber Lost?
Well, it depends on several factors. If Netflix were to target the marketing location, it would be so advantageous when they research Canadian user’s characteristics and find the identical countries. At lease, 4-5 countries should be applied to cover lost revenue from Latin America. In addition, ad-free plan strategy for ad-supported tiers should be optimized for more.
For other options, there will be an additional benefit for loyal users, such as creating special bundling prices for users who subscribe to Netflix for 2 or 3 years. Bundling price strategy also can be applied to get new users, such as referral code usage. Existing users can promote Netflix to newcomers. Once new users have successfully registered by their referral code, they will get special bundling prices such as free subscription for a month for example.
By applying mentioned strategies, most likely the answer will be positive. Just setting realistic timelines, not rushing and not taking a long time in between, will Netflix bounce back from subscriber loss! Goodluck for Netflix, stay awesome to provide the best movies! Are you struggling in digitally growing your business? Position your brand as an industry authority with the guidance of our Digital Marketing Expert. As a Digital Marketer Expert, we will help you establish thought leadership, build credibility, and gain the trust of your target audience, setting you apart from your competitors.
Stay update about business and digital marketing news with write in mind!
Happy Reading! 🙂
