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Netflix is now a household name. That much is certain. Most people, even if they don’t have Netflix or even have access to Netflix, are familiar with the brand name and even some of the content that it offers. But with Netflix reporting a slowdown in new signups, there are a few takeaways to consider.
Are people signing up elsewhere?
The answer to this is both yes and no. Netflix can’t grow infinitely. At some point, it’s going to start maxing out the new signup growth, especially in its home market. The company has been working on expanding internationally, but even its international signups have slowed. To be clear, over 2 million people became new Netflix subscribers in Q4 of 2020. That’s more subscribers than most streaming services have in total. But for a company like Netflix, that’s bad news. It means interest is waning, even in its growth market.
Realistically, though, Netflix isn’t the only one interested in its growth markets. Homegrown options are flourishing, and Netflix competitors, like Disney+, are also expanding internationally. Take India, for example. Netflix is attempting to make huge gains there, but between 2020 and 2021, 7 new services became available in the country, including Discovery+. And while Netflix has a must-see catalog of original content, its pricing is high.
Netflix raised prices (on some of us)
Netflix recently announced a price increase. This wasn’t a big surprise, and it was within the expected range. But consumers are feeling the pinch of inflation pretty much everywhere, and they’re less eager to sign up for pricier services when cheaper options are available and they can still share passwords. As it were, Netflix is probably looking to formalize a crackdown on password sharing outside of households, as it started testing this concept last year.
Who’s adding subscribers?
All of the smaller, but still big names you can think of have been slowly adding subscribers. Disney+, Discovery+, HBO Max. The competition has become dense enough of interest to draw away potential new subscribers for Netflix. And as long as they can compete on price and catalog quality, Netflix may continue to see its subscriber growth flatline.
Sam Cook is a full-time content strategist by day, a part-time freelance content writer since 2015. In another life, he was a high school English teacher for nearly a decade. Based in sunny New Orleans, he writes long-form educational content on technology, including Insurtech, Fintech, HRtech, and content streaming. He loves whittling down complex ideas within these areas that make decisions easier for buyers. When he’s not reading books with his son Miles and playing video games with the family, you can find him immersed in his growing collection of Euro-style board games.
