Why is Netflix Falling Down?

While you ask yourself, what is the reason behind the fall of Netflix? The answers will circulate in many forms. Some will say that it is the repeated content of Netflix. Others will talk about the departure of hundreds of thousands of subscribers. But, in reality, they can be the convergence of different reasons.

The Streaming platform has been so popular that it is very rare that, in a regular conversation, there is no talk about its series on transmission. Why is Netflix going down? Or, what are the reasons that Netflix services are shrinking more and more.

Netflix Subscriber Losses

Netflix has lost almost a million subscribers in the last quarter. A total number of around 970,000 subscribers left the platform. It is the largest loss of subscribers in the history of Netflix. For its part, more subscribers are expected to leave the platform with the new administrative policies.

Netflix has reported on the increase in costs and, through it, the restriction to share accounts. With this, it will request five Latin American countries, which are unknown at the moment, the payment of an additional 2.92 euros to add second homes to their accounts.

Not counting the departure of Netflix from Russia and the ravages of war in Ukraine, which has paralyzed certain points in these countries. For the past three months, Netflix has tried to adjust its business models for the rest of the year. With this, it will try to keep the loss of users as low as possible.

Netflix Falls Into the Stock Market

With the above, Wall Street begins to place the Streaming platform in constant evaluation. Already on April 19 it was learned that Netflix lost half of its price in the market.

In addition to the loss of subscribers, the current situation of rising inflation in the United States would force the Fed to control prices. The lower consumption that the market has, and the wide recession, submerge everything. And more for a company that, in the thought, could invest in new productions.

Therefore, the values between purchase and sale are becoming lopsided, since investors do not know if the company's recession will continue. Of 40 analysts, only 9 resort to buying shares, 4 remain and 27 seek to sell.

More Competition for Netflix

We should not be surprised at platforms such as HBO Max, Disney + and Amazon, which are in constant search for optimization. The competition facing Netflix maintains unlimited quality. Disney+ with Marvel releases and Star Wars sequels. HBO with the latest releases from Warner Bros, DC and Cartoon Network production companies.

So as Netflix loses customers and its quality declines, its competition increases. With this, we can indicate the most frequent downloads and the number of subscribers (and towards the public that each platform is directed to).

Disney + is in search of its first users, coming together in stories with productions such as "Spiderman" and recent Marvel movies. HBO has successful series from the mid-2000s. To do this, the types of audiences the company targets are shrinking. Is it because of quality and production?

The attractiveness of a streaming system will have very little to do with its location, beyond the demand, and if it is allowed to reach those sites. Well, many people opt for other services at a lower price, others for free and, finally, there are others who are not even interested in it.

Read also: The Changes that Netflix Will Make to Stay Afloat

Quality in Series and Movies on Netflix

The point about Netflix movies and series is highly debatable. We can think of productions like "Stranger Things" of high quality, as well as others that remain intact like "Breaking Bad" or "Black Mirror". On the other hand, there are the Korean dramatic novels that maintain a high rating.

Netflix original productions have led her to become very prodigious within large production companies. Actors like Ryan Reynolds, who has been a fundamental cast of Netflix, also Dwayne Johnson, Jaime Foxx, Anya Taylor-Joy, and more stars, bring level to the platform.

Perhaps poor productions are very few, such as "Red Notice", for example. However, the productions that you can underestimate due to their content, script, production are very limited .

During its journey, and knowing its strong influence in Latin America, the platform has also stood out for series such as "Rebelde", "Betty la fea", "Pasión de gavilanes", "Pablo Escobar" and other renowned ones that users enjoy in this region.

Increased Fees on Netflix

The increases in Netflix will begin to apply to new users who are entering, and in the next monthly installments of people who already have time on the platform.

The first increases of Netflix were reflected in the United States and Canada, and it is planned, for the month of August, to reach Latin America. The Premium plan increased to $19.99, the Standard plan increased to $15.49 per account, and the Basic plan increased to $9.99 per month.

From the above, subscribers draw only one conclusion: Netflix's competition is cheaper to rent. From this increase and, taking into account what was previously stated about Netflix in the stock market, the company increases its shares by almost 3%, standing at $533.84 per share.

Netflix's rates may find great rejection and, therefore, another number of user losses, apart from the departure of Russian territory by Netflix, where a good proportion of viewers is lost.

Conclusion

The fall of Netflix maintains several edges. It looks like a row of dominoes of cause and effect. Not just touching on the issue of Netflix subscriptions, high prices or the rushed time to release productions that are not very well done.