8 Reasons Why Netflix Is Losing Subscribers

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The pandemic, price hikes and stiff competition are among the factors plaguing the streaming giant’s subscriber retention

Netflix has everyone wondering if it can turn around subscriber losses. (Getty)

Why has Netflix seen such a dramatic drop in subscribers?

On Tuesday, the streaming giant shocked Wall Street and its shareholders when it announced a 200,000 subscriber drop as part of its first-quarter earnings report. While that number may not seem large compared to the total 222 million paying customers it still has, this is the first time in about a decade that Netflix has seen a loss of subscribers. Additionally, the company projects it will lose 2 million more subscribers in Q2.

Several factors contributed to the company’s growing cancellations, including pandemic production stoppages, a price increase, and the fact there are simply so many competitors vying for customers’ streaming dollars.

The pandemic bubble burst

The first two years of the pandemic proved a boon to Netflix as millions of people stayed home and binged original series like “Tiger King” and “The Queen’s Gambit.”