Netflix hikes monthly prices consequently losing subscribers
Netflix has seen better days on the stock market. Amidst increased prices and less quality shows, Netflix now faces unprecedented low stocks that could set the tone for the streaming service’s future. So how will Netflix hold on to subscribers while low prices go away?
The first reaction has been making matters worse, Netflix recently announced an increased price for its streaming service that left loyal subscribers confused and alarmed. Nowadays every type of service almost guarantees price increases, but for Netflix it backfired resulting in a loss of about 200,000 subscribers according to AP News. Netflix will continue to lose profits and lose over other competitors if there is no change down the road.
Streaming services like Hulu, Peacock and HBO Max offer varieties of shows and exclusive content. Take Hulu for example, recently it has created a platform for the reality-entrepreneur family the Kardashian-Jenners. The family gained attraction and fans in their last reality show that aired on E! Network but has now turned to Hulu for a same reality show with a different company.
Competing streaming services are kicking Netflix to the curb. Although Netflix has original reality series of their own, none recently has had a major premiere like the “The Kardashians.” People may not have a preference for the reality star’s new show but there’s no denying they have a big following and success no matter what they do, it’s a given that loyal fans will support them especially for a new show.
“The Kardashians” is the most watched series premiere on Hulu in the United States to date according to Variety. If Netflix doesn’t take action to gain new subscribers, flocks of old subscribers will turn to new streaming services.
Netflix also has a money allocating issue. “Stranger Things,” one of its most streamed series in 2019 and described as the most watched original Netflix series, according to Nielsen in a press release, has been given a $30 million budget for each episode as said by a Wall Street Journal report. Pushing away other series from streaming on the platform turns away subscribers, especially those who don’t wish to see teenagers and strange phenomena fight to the very end in a concluding or more so confusing cliffhanger.
Each episode costing over $30 million sounds absurd considering how much other hit series have half the budget such as “Game of Thrones” with $15 million in budget per episode or “Breaking Bad” with $3 million in budget per episode. Audiences should expect a live action experience to happen with that high of a budget, perhaps a demogorgon launching out of the screen and scaring viewers for an out-of-body experience?
Not only this but the constant complaints of quality and affordability did not make Netflix budge.
Rather than attentively listening to customer’s concerns, the service instead ignored important points and did the opposite; hiking prices. To make matters worse, rumors to prohibit password sharing and inclusion of advertisements between episodes turned away subscribers resulting in a massive drop of its stock prices and lawsuits of investors according to Variety.
Password sharing and advertisements could be a thing of the past. No advertisements brought customers satisfaction, most if not all audiences would like to start a show right away without the bore of an ad of a spring sale at Macy’s. As for password sharing, many who shared Netflix passwords obviously did not have monthly payments, saving money as a result. Many who benefited from sharing passwords would rather not have the service at all if it means paying $9.99 a month.
The future of Netflix looks very grim.
Although Netflix remains popular, it can seriously enter a flop period with difficulty to get out of. It really all depends on how executives can handle the lash back from investors and subscribers alike.