Netflix has long seen solid growth in the subscriber base but there is a slightly disturbing number in the recent survey from Parks Associates, a leader in researching online streaming and OTT.
In the study, which was released this week, Parks Associates notes 5% of American broadband households canceled Netflix in 2015, an increase over 2014.
There are many reasons that could explain why people are canceling Netflix at an increased rate. One of them has to be the fact that there are more options than ever for online streaming. It is also possible that the slow, but steady, perception that Netflix does not have what people want could be a factor.
We do know that Netflix has fewer tittles today than they did a few years ago. Both Netflix’s movies and TV catalogs are smaller than they were a few years ago.
No matter the reason, a slow but steady increase in cancellations is likely something to concern Netflix. It seems that Netflix has noticed the demand for better content and is moving to make it happen.
Maybe the biggest move to help address this is one that happened back in 2012 when Netflix struck a deal with Disney to bring their content to Netflix. That deal won’t start until September 2016 but should help bring in a ton of new content.
Netflix is also investing $6 billion into their original content to counter having to deal with Hollywood studios who seem less than excited to work with Netflix.
It will be interesting to see what happens with Netflix over the next year as many new services are expected to launch soon. At least four major new live streaming services have been announced on top of two that have already launched this year.
So did you cancel Netflix in the last year? Or have you thought about possibly canceling Netflix? Why?
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