Netflix's biggest threat is that competitors are catching up

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p"]},"wordCount":"681","inLanguage":"en-US","articleBody":"Netflix is having a miserable year. The streaming giant shed 200,000 subscribers in the first quarter of 2022 -- its first loss in more than a decade -- and dropped around 1 million more in quarter two.\r\n\r\nThe company's woes have sparked concerns that video streaming is dying, but research suggests that there's plenty of life left in the sector.\r\n\r\nA May study by Hub Entertainment Research estimated that 89% of US consumers subscribed to one in streaming service in 2022 -- an 11% increase on the previous year.\r\n\r\n"Netflix\u2019s subscriber loss in Q1 of 2022, and its anticipated losses in the following quarters, represent a tiny proportion of its global subscriber base," said study co-author Peter Fondulas. \r\n\r\n"And in fact, at some point, a service as widely penetrated as Netflix has only so much room left to grow. In our view, it would be a grave mistake to take the Netflix experience as a sign that streaming TV services are on the verge of decline, as some analysts have suggested."\r\n\r\nOther studies have discovered further grounds for optimism. Antenna, for instance, found that first-quarter US subscriptions in the Premium SVOD (subscription video on demand) category rose 4% quarter-on-quarter and 25% year-on-year -- despite Netflix\u2019s losses.\r\n\r\n[caption id="attachment_1389971" align="alignnone" width="1600"] Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1\u201922[/caption]\r\n\r\nZuora, a subscription software vendor, has also released\u00a0upbeat data. The company found that the monthly churn rates among its customers are lower than pre-pandemic levels -- decreasing 19% compared to three years ago (March-May 2019 to March-May 2022), and 11% in just the final three months.\r\n\r\nA March survey by Deloitte, meanwhile, found that the average churn rate in the US has remained consistent since 2020 at 37%.\r\n\r\nNone of this means that all is rosy at Netflix. The company's user base has been depleted by pulling the service\u00a0in Russia,\u00a0a cost-of-living crisis, the use of shared accounts, and a recent price increase.\r\n\r\nYet many analysts believe the biggest issue is the rise of Netflix rivals.\r\n\r\n[pullquote]Netflix is now the one being disrupted.[/pullquote]\r\n\r\nCompetitors including Disney, Amazon, HBO Max, and Apple are now catching up on the pacesetter.\r\n\r\nDisney+, for instance, added 7.9 million paid customers in the first three months of 2022, while HBO and HBO Max ended March with 3 million more subscribers\u00a0than at the end of last year.\r\n\r\nNetflix users, meanwhile, appear increasingly unhappy with the streaming service. A recent survey by tech entertainment firm Whip found that Netflix has dropped from number two in the industry for customer satisfaction in 2021 to fourth this year. The company now ranks behind HBO Max, Disney+, and Hulu.\u00a0\r\n\r\nConsumers now face an overload of choice at a time of tightening household budgets -- and some are ditching Netflix for its rivals.\r\n\u201cNetflix once disrupted the entertainment space but is now the one being disrupted by competitive streaming platforms that have been aggressively scaling up,"\u00a0said Forrester\u00a0VP and Research Director\u00a0Mike Proulx in a statement last week.\r\nThe growing competition has led Netflix to reverse its stance against ads. This month, the platform revealed that it's partnered with Microsoft to introduce a\u00a0 lower-priced, ad-supported subscription plan.\r\n\r\n[pullquote]They have to focus on keeping their current subscribers coming back.[/pullquote]\r\n\r\nResearch suggests that the move could prove successful. A\u00a0December survey from Forrester found that 43% of US online adults who use a streaming service are concerned with how much they\u2019re paying -- and 44% will accept ads if it means they pay less.\r\n\r\nThe company has also unveiled plans to crack on password sharing. But Tien Tzuo, the CEO and founder of Zuora, argues that further changes are needed.\r\n\r\n"They are still the king of streaming, but to continue to lead, they can\u2019t just focus on subscriber acquisition, they have to focus on keeping their current subscribers coming back," he said.\r\n\r\n"Beyond more shows, Netflix should rethink the binge, offer annual plans, and unbundle their content to create smaller, cheaper (and ad-free) offerings."\r\n\r\nSuch moves could boost Netflix's user base -- but rivals are also improving their product offerings.\r\n\r\nConsumers could reap the benefits of this competition. Netflix, however, faces further threats to its market lead.\r\n\r\nHT: TV Tech","dateCreated":"2022-07-25T16:17:33+00:00","description":"Netflix is having a miserable year. The streaming giant shed 200,000 subscribers in the first quarter of 2022 -- its first loss in more than a decade -- and dropped around 1 million ...","commentCount":"0","dateModified":"2022-07-26T08:02:33+00:00","copyrightYear":"2016","datePublished":"2022-07-25T16:17:33+00:00","articleSection":"Plugged","copyrightHolder":{"@id":"https://data.thenextweb.com/tnw/entity/tnw"},"mainEntityOfPage":{"@id":"https://thenextweb.com/news/netflix-subscriber-losses-dont-mean-streaming-is-dying","@type":"WebPage","breadcrumb":{"@id":"#Breadcrumb"}},"sourceOrganization":{"@id":"https://data.thenextweb.com/tnw/entity/tnw"},"interactionStatistic":[{"@type":"InteractionCounter","interactionType":"https://schema.org/ShareAction","interactionService":{"url":"http://www.twitter.com","name":"Twitter","@type":"Website"},"userInteractionCount":"0"},{"@type":"InteractionCounter","interactionType":"https://schema.org/ShareAction","interactionService":{"url":"http://www.facebook.com","name":"Facebook","@type":"Website"},"userInteractionCount":"0"},{"@type":"InteractionCounter","interactionType":"https://schema.org/ShareAction","interactionService":{"url":"https://www.reddit.com","name":"Reddit","@type":"Website"},"userInteractionCount":"0"},{"@type":"InteractionCounter","interactionType":"https://schema.org/CommentAction","userInteractionCount":"0"}]},{"@id":"https://data.thenextweb.com/tnw/entity/netflix_3","url":"https://thenextweb.com/topic/netflix-3","name":"Netflix","@type":"Thing","sameAs":"https://data.thenextweb.com/tnw/entity/netflix_2","@context":"http://schema.org","description":""},{"@id":"https://data.thenextweb.com/tnw/entity/amazon","url":"https://thenextweb.com/topic/amazon","name":"Amazon","@type":"Organization","sameAs":["http://dbpedia.org/resource/Amazon.com","http://rdf.freebase.com/ns/m.0mgkg","http://yago-knowledge.org/resource/Amazon.com","https://data.thenextweb.com/tnw/entity/amazon-com"],"@context":"http://schema.org","description":""},{"@id":"https://data.thenextweb.com/tnw/entity/apple","url":["https://thenextweb.com/topic/apple","https://www.apple.com/","https://twitter.com/Apple","https://www.youtube.com/user/Apple","https://www.linkedin.com/topic/apple","https:/www.facebook.com/Apple"],"name":"Apple","@type":"Organization","sameAs":["http://www.wikidata.org/entity/Q312","https://dbpedia.org/page/Apple_Inc."],"@context":"http://schema.org","description":"Apple Inc. is an American multinational technology company that specializes in consumer electronics,software and online services. 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class="o-page__main"> <main class="c-channel c-channel--latest o-page__main" id="article_container"> <div class="c-articles"> <div class="c-articles__backdrop"><div class="c-articles__backdrop--sticky"></div></div> <div class="c-nav__message c-nav__message--article news" style="top:0"> <p>This article was published on <strong>July 25, 2022</strong></p> </div> <header class="c-header"> <div class="o-wrapper"> <div class="c-header__text"> <ul class="c-header__tags c-tags c-tags--centered"> <li class="c-tags__tag"> <a class="c-tags__link c-article-leadtag" data-event-category="Article" data-event-action="Tags" data-event-label="Plugged" data-event-non-interaction="false" href="/plugged">Plugged</a> </li> </ul> <h1 class="c-header__heading"> Netflix losses: The streaming giant’s biggest threat is competitors are catching up </h1> <p class="c-header__intro" > Reports of streaming's death have been greatly exaggerated </p> <br/> <div> <time datetime="July 25, 2022 - 4:17 pm">July 25, 2022 - 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sizes="(max-width: 1023px) 100vw 868px" srcset="https://img-cdn.tnwcdn.com/image?fit=576%2C324&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2022%2F07%2FUntitled-design-2-1.jpg&signature=09f0e67dd0a6c898ff265d9f4a49ba77 576w, https://img-cdn.tnwcdn.com/image?fit=1152%2C648&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2022%2F07%2FUntitled-design-2-1.jpg&signature=e16a59e818c9ecb5a598297990d9cfc8 1152w, https://img-cdn.tnwcdn.com/image?fit=1280%2C720&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2022%2F07%2FUntitled-design-2-1.jpg&signature=04ed59bf904d78572d6e572389d5b7bd 1280w" > </noscript> <a class="c-article__mediaCredit" href="https://www.publicdomainpictures.net/en/view-image.php?image=420780&#038;picture=woman-showing-a-laptop-screen"> <svg class="c-article__mediaCreditIcon"><use xlink:href="/assets/next/img/icons.svg#camera"></use></svg> <span class="c-article__mediaCreditText">Image by: Petr Kratochvil (edited)</span> </a> </figure> </div> <div class="screen-size mobile-screen" style="text-align: center"></div> <script> document.getElementsByClassName('tnw-ad-wrapper')[1]?.classList?.add('ad-wrapper__growth-quarters'); </script> <div class="c-article__main max-lg:mb-xxl"> <div class="c-richText c-richText--large" id="article-main-content"> <p><a href="https://thenextweb.com/topic/netflix" target="_blank" rel="noopener">Netflix</a> is having a miserable year. The streaming giant <a href="https://www.hollywoodreporter.com/business/digital/netflix-q1-2022-earnings-1235132028/" target="_blank" rel="nofollow noopener">shed 200,000 subscribers</a><span> in the first quarter of 2022 —</span> its first loss in more than a decade — and dropped around <a href="https://uk.movies.yahoo.com/netflix-lost-970-000-subscribers-200257936.html" target="_blank" rel="nofollow noopener">1 million more</a> in quarter two.</p> <p>The company’s woes have sparked concerns that video streaming is dying, but research suggests that there’s plenty of life left in the sector.</p> <p>A <a href="https://hubresearchllc.com/reports/" target="_blank" rel="nofollow noopener">May study by Hub Entertainment Research</a> estimated that <span>89% of US consumers subscribed to one in streaming service in 2022 — an 11% increase on the previous year.</span></p> <p><span>“Netflix’s subscriber loss in Q1 of 2022, and its anticipated losses in the following quarters, represent a tiny proportion of its global subscriber base,” <a href="https://www.tvtechnology.com/news/new-research-suggests-the-streaming-party-isnt-over" target="_blank" rel="nofollow noopener">said</a> study co-author Peter Fondulas. </span></p> <p><span>“And in fact, at some point, a service as widely penetrated as Netflix has only so much room left to grow. In our view, it would be a grave mistake to take the Netflix experience as a sign that streaming TV services are on the verge of decline, as some analysts have suggested.”</span></p> <p>Other studies have discovered further grounds for optimism. Antenna, for instance, found that first-quarter US subscriptions in the Premium SVOD (subscription video on demand) category rose <a href="https://www.antenna.live/post/antenna-q122-premium-svod-growth-report" target="_blank" rel="nofollow noopener">4% quarter-on-quarter and 25% year-on-year</a> — despite Netflix’s losses.</p> <figure class="post-image post-mediaBleed aligncenter"><img loading="lazy" class="size-full wp-image-1389971 js-lazy" src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" alt="Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22" width="1600" height="800" sizes="(max-width: 1600px) 100vw, 1600px" data-src="https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ.png" data-srcset="https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ.png 1600w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-280x140.png 280w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-270x135.png 270w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-540x270.png 540w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-1536x768.png 1536w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-796x398.png 796w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-1592x796.png 1592w"><figcaption><a href="#" data-url="https://twitter.com/intent/tweet?url=https%3A%2F%2Feditorial.thenextweb.com%2Fplugged%2F2022%2F07%2F25%2Fnetflix-subscriber-losses-dont-mean-streaming-is-dying%2F&via=thenextweb&related=thenextweb&text=Check out this picture on: Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22" data-title="Share Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22 on Twitter" data-width="685" data-height="500" class="post-image-share popitup" title="Share Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22 on Twitter"><i class="icon icon--inline icon--twitter--dark"></i></a>Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22</figcaption><noscript><img loading="lazy" class="size-full wp-image-1389971" src="https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ.png" alt="Antenna observed 37.4M new Premium SVOD Subscriptions in the Q1’22" width="1600" height="800" srcset="https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ.png 1600w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-280x140.png 280w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-270x135.png 270w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-540x270.png 540w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-1536x768.png 1536w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-796x398.png 796w, https://cdn0.tnwcdn.com/wp-content/blogs.dir/1/files/2022/07/627d35a5b939a738181b8533_WDO9SlLZTQD18YpiZUHfOFCiOpK97WDZudmTlCdFqm0caesBIUzKTWdGklJvxqgZvAwDUUb0Z7HSvm1WL2VLjQ46pQocs21ag4jpuKO3ax4CptLOEH6VcJMlXrtmTu8tw6mHiK-puRyKyN3hpQ-1592x796.png 1592w"></noscript></figure> <p>Zuora, a subscription software vendor, has also released upbeat data. The company found that <a href="https://www.linkedin.com/pulse/looking-data-three-lessons-why-subscription-businesses-tien-tzuo?trk=pulse-article" target="_blank" rel="nofollow noopener">the monthly churn rates among its customers</a> are lower than pre-pandemic levels — decreasing 19% compared to three years ago (March-May 2019 to March-May 2022), and 11% in just the final three months.</p> <p>A March <a href="https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/digital-media-trends.html" target="_blank" rel="nofollow noopener">survey by Deloitte</a>, meanwhile, found that t<span>he average churn rate in the US has remained consistent since 2020 at 37%.</span></p> <p>None of this means that all is rosy at Netflix. The company’s user base has been depleted by <span>pulling the service in Russia,</span> a cost-of-living crisis, the use of shared accounts, and <a href="https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_2ef0997e-e8e4-4147-a22d-cb85d249d0ee" target="_blank" rel="nofollow noopener">a recent price increase</a>.</p> <p>Yet many analysts believe the biggest issue is the rise of Netflix rivals.</p> <blockquote class="c-richText__pullQuote"> <div class="c-richText__pullQuoteGradient"> <p class="c-richText__pullQuoteQuote">Netflix is now the one being disrupted.</p> </div> </blockquote> <p>Competitors including Disney, <a href="https://thenextweb.com/topic/amazon" target="_blank" rel="noopener">Amazon</a>, HBO Max, and <a href="https://thenextweb.com/topic/apple" target="_blank" rel="noopener">Apple</a> are now catching up on the pacesetter.</p> <p>Disney+, for instance, <a href="https://variety.com/2022/digital/news/disney-plus-march-2022-earnings-1235264311/" target="_blank" rel="nofollow noopener">added 7.9 million paid customers</a> in the first three months of 2022, while HBO and HBO Max ended March with <a href="https://www.hollywoodreporter.com/business/business-news/hbo-max-subscribers-grow-first-quarter-1235130203/" target="_blank" rel="nofollow noopener">3 million more subscribers</a> than at the end of last year.</p> <p><span>Netflix users, meanwhile, appear increasingly unhappy with the streaming service. A recent survey by tech entertainment firm Whip found that Netflix has dropped from number two in the industry for customer satisfaction in 2021 <a href="https://www.whipmedia.com/press_items/whip-media-survey-finds-hbo-max-has-the-highest-consumer-satisfaction-among-the-major-svod-platforms-as-netflix-battles-greater-competition/" target="_blank" rel="nofollow noopener">to fourth this year</a>. The company now ranks behind HBO Max, Disney+, and Hulu. </span></p> <p>Consumers now face an overload of choice at a time of tightening household budgets — and some are ditching Netflix for its rivals.</p> <p style="font-weight: 400;">“Netflix once disrupted the entertainment space but is now the one being disrupted by competitive streaming platforms that have been aggressively scaling up,” said Forrester VP and Research Director <a href="https://www.forrester.com/analyst-bio/Mike%20Proulx/BIO16024" data-saferedirecturl="https://www.google.com/url?q=https://www.forrester.com/analyst-bio/Mike%2520Proulx/BIO16024&source=gmail&ust=1658604226572000&usg=AOvVaw1hLt-bR9Mhhl3c3-1ENKFK" target="_blank" rel="nofollow noopener">Mike Proulx</a> in a statement last week.</p> <p>The growing competition has led Netflix to reverse its stance against ads. This month, the platform revealed that it’s <a href="https://thenextweb.com/news/netflix-names-microsoft-its-ally-for-ad-supported-subscriptions" target="_blank" rel="noopener">partnered with Microsoft</a> to introduce a lower-priced, ad-supported subscription plan.</p> <blockquote class="c-richText__pullQuote"> <div class="c-richText__pullQuoteGradient"> <p class="c-richText__pullQuoteQuote">They have to focus on keeping their current subscribers coming back.</p> </div> </blockquote> <p>Research suggests that the move could prove successful. A<span> </span><a href="https://www.forrester.com/blogs/netflix-saturation-nears-with-no-dearth-of-original-content-to-binge/?utm_source=pr_pitch&utm_medium=pr&utm_campaign=b2cm" target="_blank" rel="nofollow noopener">December survey from Forrester found</a><span> that 43% of US online adults who use a streaming service are concerned with how much they’re paying — and </span>44% will accept ads if it means they pay less.</p> <p>The company has also unveiled plans to crack on password sharing. But Tien Tzuo, the CEO and founder of Zuora, argues that further changes are needed.</p> <p>“They are still the king of streaming, but to continue to lead, they can’t just focus on subscriber acquisition, they have to focus on keeping their current subscribers coming back,” he said.</p> <p>“Beyond more shows, Netflix should rethink the binge, offer annual plans, and unbundle their content to create smaller, cheaper (and ad-free) offerings.”</p> <p>Such moves could boost Netflix’s user base — but rivals are also improving their product offerings.</p> <p>Consumers could reap the benefits of this competition. Netflix, however, faces further threats to its market lead.</p> <p><em>HT: <a href="https://www.tvtechnology.com/news/new-research-suggests-the-streaming-party-isnt-over" target="_blank" rel="nofollow noopener">TV Tech</a></em></p> </div> <aside class="c-contributor latest"> <a href="/author/thomas-macaulay" target="_blank" rel="noopener" data-event-category="Article" data-event-action="Author" data-event-label="Thomas Macaulay" data-event-non-interaction="false" > <img alt="Thomas Macaulay" class="c-contributor__photo js-lazy" data-src="https://img-cdn.tnwcdn.com/image/duotone?fit=240%2C240&gradient=%23660099-%233399FF&url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F911842f71ac86a5d39de8f8eda2a83bd%3Fs%3D96%26d%3Dblank%26r%3Dg&signature=37e71d36d3638c462b0adc96121bd99b" > <noscript> <img alt="Thomas Macaulay" class="c-contributor__photo" src="https://img-cdn.tnwcdn.com/image/duotone?fit=240%2C240&gradient=%23660099-%233399FF&url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F911842f71ac86a5d39de8f8eda2a83bd%3Fs%3D96%26d%3Dblank%26r%3Dg&signature=37e71d36d3638c462b0adc96121bd99b" > </noscript> </a> <div aria-label="Author Bio" class="c-contributor__main"> <h2 class="c-contributor__wrapper"> <span class="c-contributor__heading"> Story by </span> <span class="c-contributor__name" style="margin-bottom: 0"> <a href="/author/thomas-macaulay" class="latest"> Thomas Macaulay </a> </span> </h2> <span class="c-contributor__credentials"> Senior reporter </span> <p class="c-contributor__text"> <input class="c-contributor__expandInput" id="contributorExpandInput123" name="expand" type="checkbox"> <span class="c-contributor__bio c-contributor__bio--truncated"> Thomas is a senior reporter at TNW. He covers European tech, with a focus on AI, cybersecurity, and government policy. </span> <span class="c-contributor__bio c-contributor__bio--full"> Thomas is a senior reporter at TNW. 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Netflix's biggest threat is that competitors are catching up