As Netflix admitted that it is rapidly losing paid subscribers, data analytics firm Antenna revealed that the subscription platform saw 3.6 million cancellations in the United States, its most mature market, in the first quarter (Q1) of this year.
The quarterly loss is more than one million dollars higher than what Netflix experienced in both the first and fourth quarters of 2021.
Netflix’s active monthly churn rate was 3.3% as of the end of March.
“Data show that Netflix’s active monthly churn rate increased by 0.95 percentage points month over month in January.” Netflix’s active monthly churn rate will be 3.3% by the end of March 2022, according to a blog post from the US-based analytics firm.
Antenna last saw a similar spike in Netflix churn in September 2020, when the service released the film Cuties amid much controversy (active monthly churn reached 3.6 per cent during that period).
Netflix’s “Gross Additions” have remained relatively stable over the last six quarters, ranging from 2.2 million to 2.9 million.
According to the report, the company raised prices on all of its domestic plan tiers in January 2022, resulting in an increase in cancellations.
Netflix is now looking into lower-cost, ad-supported plans to rekindle subscriber growth.
“As a whole, Netflix’ performance this quarter suggests increased price sensitivity among its subscriber base, likely heightened by the abundance of consumer choice and proliferation of other services,” said Brendan Brady, Media and Entertainment Lead.
Netflix is rapidly losing long-term subscribers who have been with the streaming service for more than three years, adding to the company’s woes as revenue growth slows.
Netflix has laid off nearly 150 employees, primarily in the United States, due to slow revenue growth.