Netflix, which has been steadily increasing its membership, is facing headwinds.
Netflix has announced that the number of members at the end of March this year was 200,000 fewer than last December and is expected to drop by another 2 million by June. This includes 900,000 members in Russia, where the service was suspended.
One of the reasons for the decline in membership is said to be the increase in monthly fees in the US. Both the Standard and Premier plans were raised in February by $2.00.
Japan raised its price last year, but no price increase is planned at this time.
In the U.S., where inflation is rising, it is hard to believe that a fee increase of only $2 would cause such a decline in membership.
According to the Motion Picture Association of America, the global market for video distribution services increased 70% from 2019 to 2021 to $86 billion. This growth is also significant as the demand for nest eggs due to the new Corona.
The number of video distribution services has also increased during this period.
Many countries, with the exception of Japan, are returning to normal life by steering towards wth-corona.
This will mean that they will spend less time at home, so it is possible that they are beginning to sort through some of the video services they have subscribed to.
My wife and I enjoy dramas and movies every night, but we mainly watch Netfilix.
Until last month, we also had a subscription to the Disney Channel, but cancelled it after watching only what we wanted to watch because of the small number of movies.
Netflix not only has a declining membership, but also an account sharing problem that is estimated to be 100 million households. This means that there are 100 million cases of a single account being watched by multiple people.
Netflix's sales have already slowed, but it is still expected to grow as the abuse of these accounts decreases and legitimate members become available.
On the other hand, they are thinking of introducing a low-cost plan with ads.
My family subscribes to the premium plan, so I don't think that ads will be played, but I don't want ads to be played.
I hope Netflix, which entertains me every day, will continue to do well with more original content.
