How is it possible that content platforms on demand They rise in price year and year also if every time users cancel (or say they cancel) their subscription? It’s curious. Normally, in another context, it would be that price increases and foreseeable cancellations affected companies, but Netflix does not seem that it matters. Rather.
Context. Despite price increases and the wave of cancellations that comments on social networks usually imply, the reality is that Netflix’s benefit It was 10,247 million dollars In the fourth quarter of 2024, 16% more than the same quarter of the previous year and the best result since 2021. Was the users canceling their mass subscriptions?
If we understand “mass cancel” as in the United States only 19 million subscribers arrive in the fourth quarter of 2024 when Netflix expected 9.8 million, then yes.
Comes back. According to data from the Analytical analysis company to which it has had access Business Insiderthe reality is as follows: price increases cause cancellations, yes, but users do not take long to return. The case of Netflix is also curious because this “repentance” is greater than on the rest of the platforms.
The data. According to Antenna, 50% of users who cancel their subscription subscribe at six months. If we expand the time range until the year, the percentage rises to 61% of users. In other words, six out of ten cancellations recover after the year.
In the case of having canceled a price increase, the return will be with updated prices, ergo paying more and compensating in some way the cancellations not recovered. Moreover, it is most likely that user who returns to opt for a cheaper plan, but with advertising. 55% of the new highs They choose that modality, in fact.
The data reflects that the Netflix subscriber recovery rate is much higher than that of its competitors
Netflix vs the world. The consultant’s data shows that Netflix’s recovery rate is much higher than the average of the rest of the platforms. While at six months Netflix recovers 50% of users, the rest of the platforms barely recover 34%. In the case of Netflix it is also striking that two out of ten cancellations recover in just one month.
There is a roof. Netflix has not stopped innovating in its programming, moving from series and films to also offer sports and live events. 300 million subscribers give good faith that this has worked, but everything has a limit. Netflix seems aware that 1) continuing to grow will be complicated and 2) “As we continue to invest in programming and offer more value to our partners, we will occasionally ask them to pay a little more to be able to reinvest and continue improving Netflix.” That is to say, that prices will continue to rise.
Netflix knows that continuing subscribers will not be easy and maybe that explains that from now Don’t give that figure. We will know numbers of audiences, view, benefits, growth, etc., but not how many subscribers do Netflix have. Most likely, we will not see that data again until the 400 or 500 million are reached, very publicitable figures and from which the platform can breastfeed.
Cover image | Netflix