Netflix Still Offers Value, But Subscribers Aren't Seeing It

The numbers suggest that the streaming giant is turning off its viewers. It doesn’t have to be this way, says James Moore

- James Moore

Netflix appears to have been the biggest loser in Britain's post Christmas streaming cull, according to data from researcher Kantar. Overall, it found that 7 per cent of households had cancelled at least one of their subscriptions in the first quarter of the year. Some 144,000 households dropped out of the video on demand (VoD) market altogether, while there was a marketwide net loss of 167,000 subscriptions.

As regards the formerly undisputed kingpin of the sector, while Kantar found no dramatic drop in the majority of its key performance metrics, there was a gradual decline across almost all areas. They included satisfaction with the variety of TV series on offer, the amount of original content provided, and the overall quality of shows. Just three of the top 10 most enjoyed VoD titles were Netflix properties, compared with six a year ago. In addition, Netflix subscribers’ net satisfaction rating in value for money fell from +31 per cent to +22 per cent.

Some level of decline was inevitable, given that the cost of living crisis has forced consumers to take a critical look at what they are spending their money on. Part of Netflix’s apparent difficulties can also be attributed to increased competition, and in particular to its rivals’ willingness to produce more highquality domestic offerings.