After adding over 8 million new subscribers during Q3 2023, Netflix is facing potential subscriber losses in the US market. The streaming service raised the prices of its ad-free service last month, causing many US subscribers to start considering a cheaper ad-supported plan or even cancelling their Netflix subscriptions. Data presented by OnlyAccounts.io shows nearly 40 per cent of all US subscribers plan to cancel Netflix due to increased prices.
According to a Civic Science survey, conducted among US Netflix subscribers, Americans are fed up with the streaming giant’s increasing prices. Although the latest price growth is the first one since January 2022, Netflix prices have snowballed throughout the years.
Back in 2014, the standard Netflix subscription cost $8.99 in the US, and the premium plan was priced at $11.99. Over the next five years, these prices jumped by nearly 50 per cent, reaching $12.99 and $15.99 in 2019. As of October 2023, the price of the basic account is $11.99 instead of $9.99, while the premium account costs $22.99, up from $19.99. The standard ad-free account remained priced at $15.49, while its ad-supported cousin is still $6.99. Although investors welcomed this news, Americans are split on whether they want to stick with the streaming platform.
Nearly two-thirds of US subscribers who are considering either canceling their subscriptions or switching to a cheaper ad-supported plan is something Netflix should take seriously since North America is its second-largest market.
According to the company’s official data, Netflix had nearly 248 million paid subscribers worldwide in Q3 2023, eight million more than a quarter before. One-third of all subscribers, or 83 million, were based in the EMEA region, Netflix’s largest market.
“North America, as the second-largest market for Netflix services, had a 31 per cent share in total user count, with more than 77 million subscribers in Q3 2023, four million more than in the same quarter a year ago. It will be interesting to see the company’s Q4 results after Netflix joined the list of streamers who increased their prices amid the streamflation,” commented Jastra Kranjec, author of the report.
Categories: Articles, Consumer Behaviour, Premium, Research, VOD
Tags: ad-supported, netflix, Subscriptions, usa
