Netflix has currently faced peer pressure because of the increasing number of streaming services available. These streaming services are a lot cheaper than Netflix and they may affect Netflix’s subscribers’ growth referred to as the Netflix killers.
Netflix has never faced any problems in maintaining the subscriber’s growth or in attracting the audience in the past. Thought the service had seen the decrease in the growth of subscribers in the 2nd quarter of 2019, but it may turn to usual in the 3rd part. In September, Netflix has announced that they are near to the 160 million subscribers all around the world in which 60 million subscribers are from the U.S.
The recent prediction of subscriber drop comes from Needham and Company’s Laura Martin. While explaining the cause to Bloomberg, Martin states that Netflix’s most significant issue is the incapability to compete with the price of new streaming services, including Apple TV+ and Disney+. Such as Disney charges $6.99 each month, but Apple TV is cheaper at $4.99 every month. When compared to them, Netflix prices start with $8.99 with restrictions depending on the resolution as well as the number of streams. Several Netflix subscribers even pay $15.99 per month.
Martin has suggested Netflix launch a cheaper package in comparison to its competitors priced between $5 to $7. These services include Apple TV, Disney as well as the upcoming service of NBC Peacock. NBC still has to ensure the price of Peacock, but it is expected to cost less than a Basic plan for Netflix. Martin’s suggestion is not to drop the price of the membership package and lose money but instead provide an ad-support tier as an option. This dual ad-supported and the ad-free strategy to maintain the market value as well as contend with lower and new price set.
Netflix faces issues with an advertisement that nobody wants to an ad on Netflix, and that includes Netflix itself. Netflix with ads rumor has surfaced in the past regularly, causing Netflix to usually shut the rumors by persisting that they have no plans to add commercials. Perhaps, Netflix can get the benefit generated from ads. However, it is also important to understand advertisements that can be tough to sell to the existing subscribers. A study in 2019 in the UK has found that Netflix may lose its 57% of the subscribers if the commercials are added to streaming service, making it an unproductive choice.
Chloe Decker is a self-professed security expert; she has been making the people aware of the security threats. Her passion is to write about Cybersecurity, cryptography, malware, social engineering, internet, and new media. She writes for Norton security products at norton.com/setup.