Netflix Will Lose 700.000 British Citizens Due To The Economic Crisis

JAKARTA - Netflix is predicted to lose many subscribers at the Inggirs this year due to the ongoing cost of living crisis in the country, and the impact of a cheaper new subscription package backed by advertising.

As many as 500,000 subscribers in the UK by 2022 will disappear from the streaming service, plus 200,000 more this year, as more and more customers are aware of reducing their spending.

According to research firm Ampere Analysis, Netflix's subscribers have fallen from 14.2 million to 13.7 million this year in the UK.

Despite being the UK's most popular service, Netflix has only gained 800,000 subscribers since its launch in the UK in 2012.

The company said it lost 200,000 customers in the first quarter (Q1), far from its forecast to add 2.5 million subscribers at the time.

Likewise, the impact of the suspension of services in Russia following the Ukrainian invasion also cost Netflix 700,000 subscribers. The loss of subscribers may have been due to the end of a pandemic-triggered streaming boom as many stopped video subscriptions in record numbers earlier in the last year.

Moreover, the increase in living expenses has pushed more than 1.5 million households in the UK to cancel Netflix subscription accounts over the first three months citing money savings.

While Netflix rival Amazon Prime Video earned 12 million to 12.3 million new subscribers in 2022 with the world's most expensive TV show launch, the spin-off of Lord of the Rings, The Rings of Power, costing $465 million.

Starting this year, Netflix was also asked to ban its users from sharing their passwords with family and friends, aiming to block the platform from losing subscribers again.

It's no surprise that people turn to piracy sites to watch their favorite shows. One of the Netflix films that made the list of the top 10 most hijacked last year was Stranger Things.

Last year in June, Netflix announced it had laid off 300 employees, namely 4 percent of its workforce in the second round of layoffs. The company announced layoffs after losing customers for the first time in more than a decade.