12 ms·

All the handwringing over Netflix subscriber loss seems to be overlooking the fact that they raised their prices - significantly. Of course they could lose subs

by zmmmmm 5y ago

All the handwringing over Netflix subscriber loss seems to be overlooking the fact that they raised their prices - significantly. Of course they could lose subscribers from doing that. But 200k subscribers out of 150 million? Combined with the end of the pandemic and sky high inflation meaning many people have less opportunity to watch and less money to spend. The fact they raised their prices something like 20% and lost less than 1% of their subscriber base in that environment could almost be seen as a positive. The there is definitely a question whether, now that they have moved so solidly into content production, Netflix is actually a scalable / viable company any more. When they were just sending other people's content around and doing it much cheaper and better that was innovative and different. But content production is an expensive treadmill you can never get off and unless they find a way to innovate on that front, they are up against much more experienced and well established players with no differentiator at all. But reading the sky falling into the current reported figures seems a little over the top.

MuffinFlavored 5y ago
> raised their prices - significantly https://help.netflix.com/en/node/24926 https://help.netflix.com/en/node/24926 $9.99, $15.49, and $19.99/mo What did their prices used to be?
- squeaky-clean 5y ago
  $8.99, $13.99, $17.99 since the last increase. But in 2018 the prices were $7.99, $8.99, $11.99. It's definitely gone up significantly in just a few years.
- soneil 5y ago
  I just took a search through my email to see what I've been paying in the past: 2013 joined at 7eur/month. Can't find the email from when it went from 7 to 9. May 2016 increased from 9 to 10. August 2019 from 10 to 12. March 2021 from 12 to 13. April 2022 from 13 to 15. (All prices euro and rounded up one penny). I cancelled the day the last hike arrived - it's the least amount of time between raises, as was the previous raise before it. At the same time, their offer is getting more and more disappointing, and they're talking publicly about reducing their content spend and the possibility of adverts. I feel like they're hooked on a growth bubble, and now that they're reaching market saturation the only way they can maintain that bubble is to squeeze it out of us - charge more, deliver less - which as a user is the complete opposite of value for money, so I'm out.
AzzieElbab 5y ago
One thing that always confused me about Netflix content is that how uniquely un-re-watchable all of it is. Literally, there isn’t one piece of Netflix content that I watched more than once. It is pure volume and even though some of it is good, they produce nothing lasting.
nine_k 5y ago
I wonder why the market reacted so harshly though, with NFLX losing 1/3 last Wednesday ($347 to $215).
- killingtime74 5y ago
  The market disagrees with the higher poster’s analysis
- paxys 5y ago
  The market reacted because a much higher subscriber growth was factored into the price. After the massive drop Netflix is still worth $100B and is one of the largest media companies out there, which is nothing to scoff at.
  - vdfs 5y ago
    The forecast was to add ~2M subscribers, instead they lost 200K
  - tomc1985 5y ago
    NFLX got clapped for Q4 2021 earnings too
  - alot 5y ago
    Along with the huge miss this quarter they quided that they will lose another 2 million subs next quarter. That signals and end to growth and a rerating of the stock.
- Silhouette 5y ago
  Many of the big tech stocks are insanely overpriced according to traditional investment measures. The rational reasons to support those prices are expectations of similarly extreme future growth or a belief that it might be a speculative investment but the dollars will keep pouring in. The discussions this week aren't just a wobble, they're about whether Netflix can still generate that kind of extraordinary future growth. If there's even a strong hint that it might not then the speculative bubble bursts. If there's a serious expectation that it won't then the growth investors are out as well. One stock price crash, coming right up.
jurassic 5y ago
I completely agree. I was only lightly using Netflix so when they last raised prices it was the push I needed to actually cancel. The recent content they've rolled out doesn't justify the heftier price tag compared to competitors. I love the UX of Netflix, but content rules and they're losing that battle. I don't even want to try new shows because of their reputation for cancelling things unceremoniously.
- stingraycharles 5y ago
  > I don't even want to try new shows because of their reputation for cancelling things unceremoniously Ah, so I’m not alone in this! Nowadays, I typically only consider shows that have at least a few seasons, I will never ever try one with just one season. The chances of them killing it off are just too high, and that would ruin it completely for me. I like to binge watch, I can’t enjoy that when they keep killing off shows. It feels like a restaurant with only starters.
  - Silhouette 5y ago
    It's an unfortunate self-fulfilling prophecy of the modern data-driven mindset. Sometimes the very act of collecting and acting on that data materially affects the data itself by creating perverse incentives. The two parent posters are far from alone in my experience. Lots of people are getting turned off by the variable quality and uncertain future of the home-made productions, which means lots of people are holding off starting to watch a show until it's somewhat established and had some positive reviews. If your management strategy is to measure early engagement with your own shows and viciously kill off anything that doesn't make the cut, and if your viewers know this, then you have defeated yourself no matter how good the show is or how popular it would naturally have become. A few years ago there was almost a trend for shows that weren't getting the numbers to get wrapped up with some sort of mini-series or TV movie so at least there was a chance for the production team to finish telling their story and give some closure for the fans (who might be fiercely loyal in sentiment even if too few in number to sustain the show). It's a little ironic Netflix would probably have been in a better position than anyone to adopt this kind of strategy and establish a reputation for being trustworthy and loyal to fans. Now it has the opposite reputation and we're openly speculating about whether it will ever recover.
zenithd 5y ago
hamiltont 5y ago
Think I read somewhere that of one of their content production differentiators is their direct-to-consumer approach. Classically lots of content was produced for the "average" consumer. Netflix can use their subscriber data to create low-cost content for extremely niche consumers, who might love that extremely relevant production (think super edgy, super graphic, super cartoon, etc - the type of extremes not covered by the average). Not sure how much this holds true anymore, as now many big players have direct-to-customer streaming, but just sharing since it was a neat thought when I first read it
- AndrewUnmuted 5y ago
  This seems like a way of sugar-coating the actual content strategy Netflix deploys, which has much more to do with product placement than it does content production. Their strategy is to align their content productions with the brands that best correlate with their subscriber base. In so doing, they can create lucrative deals with brands where their products are intricately woven into the stories/narratives of the show. As an example, Stranger Things featured an average of 9 minutes of product placement for each episode of their third season. [0] The company claims they did not receive any payments from brands for this placement [1], but they likely received other extremely valuable considerations in the form of payment instead. [0] https://www.ama.org/marketing-news/product-placement-in-stranger-things-3-valued-at-15-million/ https://www.ama.org/marketing-news/product-placement-in-stra... [1] https://www.fastcompany.com/90380266/more-product-placements-may-come-to-netflix-but-dont-call-them-ads https://www.fastcompany.com/90380266/more-product-placements...
  - SturgeonsLaw 5y ago
    I hope those advertisers feel like they got their money's worth, because I can't remember a single brand from Stranger Things
    - AndrewUnmuted 5y ago
      How could you have missed all the Coca-Cola in that show?!
rdtsc 5y ago
> they raised their prices - significantly Yeah, and I was right on the edge, not really watching it enough to justify the previous, cheaper, price. When they raised the price it served as a motivation to cancel it. In a 6 months I might join for a bit to watch some newer shows, then probably cancel again. Raising prices works well perhaps if people are in love with the product or there is just no other alternative. But people have been auto paying and not really thinking much or using it, raising the prices is a decision point to re-evaluate the value of the service.
- ryanSrich 5y ago
  Yeah I’m surprised at how little I’m seeing about this. I canceled last month because of the price increase, and I would not have canceled if they hadn’t raised prices. At $9-$14 it’s fine if I only watch it once a month. But at $20 it’s no longer worth it.
  - FridgeSeal 5y ago
    I recently got a new monitor, and new internet, so I’m finally able to watch 4K Netflix, I upgraded at right about the time the price rise went through, and must have glazed over the announcement, so I just went “oh right, that’s just got much 4K costs, ok”. Given the subsequent lack of actual 4K content, general lack of content, and the fact that I’ll be finishing the shows I’m watching means that I’ll likely join the lost-subscriber group in a week or 2.
  - specialist 5y ago
    I'm now hopping between streaming subscriptions. Round robin style. eg When Apple TV accumulates enough new binge worthy stuff, I'll sign up for a month. So probably once a year. Ditto all the other streamers. It's now pretty rare that I'm compelled to see new OC apon release. Excepting The Orville, natch.
  - 1123581321 5y ago
    If you were paying $9 or $14, your new price would have been $10 or $15.50. The people paying $20 were previously paying $18.
HNHatesUsers 5y ago
wallacoloo 5y ago
consumers don’t everywhere react instantly to price changes. the number of lost subscribers is likely to be greater than what you see today as consumers explore alternatives over time and change. though by how much i don’t know. (for example, it pushed me past the edge to install Jellyfin & friends, but i’m keeping Netflix as backup until i’m comfortable/confident with my new setup).
giantg2 5y ago
With the established content producers starting their own streaming services, or having more competition of buyers for their content, it seems Netflix has little choice but to move into production. Otherwise it would be a slow death as competitors move in and content prices are bid up. Just my guess though.
ConnorCallahan 5y ago
> question whether, now that they have moved so solidly into content production, Netflix is actually a scalable / viable company any more Netflix is a scalable company precisely because they produce content, when they are share other people's content any other platform can do that. But when they create their own content suddenly they operate based on a fixed cost rather than paying for other people's content.
wallacoloo 5y ago
> The there is definitely a question whether, now that they have moved so solidly into content production, Netflix is actually a scalable / viable company any more. When they were just sending other people's content around and doing it much cheaper and better that was innovative and different. to borrow cliched terms, big companies protect their position by either building a monopoly (Bell, your traditional telco) or building a moat (Apple). Netflix started with an effective monopoly on film distribution/streaming. at some point Disney & friends extended their moat vertically (Disney+), eating into the distribution layer that Netflix previously monopolized. perhaps leadership understood the monopoly would only ever be temporary and decided to build out their internal production house as such. whatever the case, Netflix still has the possibility of transforming this into a moat that stands alongside the other players in this space. maybe it can exist as this, but it will surely be less profitable than its monopoly days.
xyzzy21 5y ago
This is certainly part of it. There are also those who are not happy with woke content and "Anything Silicon Valley/Tech" and are walking away. Disney has the same thing going.
- DonHopkins 5y ago
  Racist homophobic bigots hate "woke" content, but so what? Who wants those snowflakes as customers anyway, who are so terrified of being exposed to cartoons of Mickey Mouse and Pluto having steamy hot gay sex? Let them try to cancel culture and walk away from scary cartoon animal sex all they want. How's Trump's "unwoke" social network working out? https://www.vanityfair.com/news/2022/04/ted-cruz-mickey-pluto-disney-dont-say-gay https://www.vanityfair.com/news/2022/04/ted-cruz-mickey-plut... >TED CRUZ WARNS DISNEY PROGRAMMING WILL SOON DEPICT MICKEY AND PLUTO F--KING >The senator from Texas thinks the company’s opposition to Florida’s “Don’t Say Gay” law means it’s going to introduce X-rated content featuring animated characters “going at it.”
  - ehvatum 5y ago
    > Racist homophobic bigots hate "woke" content There’s no accounting for taste. You should not be so fast to hate; it prevents you from understanding that which you wish to change. After all, we’re talking about entertainment, not war. Aren’t we?
    - Throwawayaerlei 5y ago
      Actually, we are talking about war, a cold civil war in the US and a lot of the West, and often hot shooting ones in the countries in which we foment color revolutions, the Ukraine being the current extreme example of that.
  - downrightmike 5y ago
    He hopes in his heart of heart to not have to skip down to cancun to use grindr
  - IMTDb 5y ago
beloch 5y ago
They've lost 200K subscribes... so far. The full effect of price increases will take time to fully play out, plus the effects of implementing commercials have yet to be seen. Also, it remains to be seen how other streaming services will respond. Will they raise prices and add commercials too? If Netflix becomes the one streaming brand most associated with actions hostile to their viewers, this could be the beginning of a long decline.
- loceng 5y ago
  This 200k subscribers number is missing the elephant in the room. They expected 2.5 million new subscribers. They didn't get those 2.5 million new subscribers and actually lost 200k, so they're technically -2.7 million subscribers. This may have also triggered an exodus of subscribers too, even if Netflix doesn't do anything additionally stupid to turnoff consumers.
  - FridgeSeal 5y ago
    I know it’s commonly used logic, because announcements and expectations and whatnot, but I find the logic of: > They didn't get those 2.5 million new subscribers and actually lost 200k, so they're technically -2.7 million subscribers To be extremely questionable, if not outright incorrect. They didn’t lose something they didn’t have. 2.5m people didn’t leave, 200k did. Sure, they didn’t reach a target of 2.5m new users, but that’s not the same as losing them. I know, shareholder announcements/analysts predictions etc, I know I’m not going to change that logic, but I still think it’s bad logic.
    - vmception 5y ago
      I think it’s that the logic only matters to shareholders who are willing to pay a premium price for the shares based on trajectory. Mess up the trajectory, mess up the share price.
    - deepzn 5y ago
      They actually lost 700K subs to Russia, when they stopped the service there, and some around EMEA too. They actually added 500K subs net minus Russia impact.
bobitsaboy 5y ago
Definitely a part of it for some. Me, I cancelled due to the low quality of their catalog. A decade or so ago, they had a really strong library of media. Now they don't. What they spend their money on, I find to be severely lacking.
- deleted 5y ago
  [deleted]
- i2shar 5y ago
  Few months ago I rage quit Netflix because their shows would start autoplaying and nothing I did could disable that. I couldn't read one synopsis distraction free or browse without having to constantly click my GTV remote just to stop the friggin thing from playing. WTF! I'd like to think there were more like me who voted by cancelling their subscriptions. I hope PMs at Netflix who forced this onto their users lost their jobs.
  - WelcomeShorty 5y ago
    Sign in to Netflix. Click the down arrow next to the Profile box. Choose Manage Profiles and select a profile. Under Autoplay controls, uncheck Autoplay next episode in a series on all devices. Also uncheck Autoplay previews while browsing on all devices. Choose Save.
    - i2shar 5y ago
      Had done that (obviously), didn't work on Chromecast with GTV. Had called customer support and filed a technical ticket. Nothing happened. Too late now.
- fmajid 5y ago
  Same here. There is literally nothing I want to see on Netflix since The Witcher season 2 ended. Same with Disney+. Oddly enough Amazon has the most compelling content, and I'd pay for Prime even if they didn't offer streaming, so it's essentially free for me.
- 5y ago
accountofme 5y ago
Netflix has good points: best ui. Good library. Their bad points is what worries me for the service: poor quality of new content. I have not seen anything that wows me for quite some time at least for my preferences (SciFi). So maybe it is for Netflix (the sky falling) things that start as a trickle might end as a flood.
- castwide 5y ago
  I feel like Netflix has been declining for years. A decade ago, their recommendation algorithm was phenomenal. Today, both their library and their recommendations are severely lacking. I'm not sure how much longer I'll bother to subscribe.
  - dumbfounder 5y ago
    This is it for me. Maybe they have decent content but I can’t seem to find it easily anymore. Netflix was a necessity once upon a time, but now I am on the edge of canceling.
- bushbaba 5y ago
  Funny as paramount+ has done a better job of adding new content than netflix these past few months. The Halo TV show and Picard while C to B- are still miles better than much of the newer netflix content.
- srj 5y ago
  Check out "Dark". I can't explain it without spoiling things but there's a significant twist a few episodes in and it goes down a wild sci fi path.
  - accountofme 5y ago
    Thanks for the suggestion! I'll give it a look!
  - maleldil 5y ago
    The first season of Dark was released in 2017. I believe the "shit content" phase got really strong in 2020. Which is also when Dark's last season was released, and it's the weakest (IMO).
ftlio 5y ago
I can't think of anything I care about that's on Netflix. I also can't imagine cancelling it... There's always something. Between my wife and I both barely caring, they have my money for years. I imagine they'll survive, and if content doesn't turn around, they'll be bought in some final round of media conglomerates mergers, where I'll be even less able to get rid of it.
hyperpallium2 5y ago
Surely stay-at-home covid was a boon to Netflix?
jmyeet 5y ago
You focused on price and I think that's a significant factor. Where once Netflix was $8 not really that long ago, it's now $15.50, which is more expensive than HBO (and HBO Max with the merger has an even deeper catalog than it did in the HBO Now time, even though the HBO Now software and website was IMHO much better). What these media companies seem to want is for us to pay $100/month in various streaming services rather than the $80/month we were paying for cable because, hey, we should pay for the privilege of unbundling right? I refuse. Netflix is no longer an automatic renewal. I'll sign up for it 1-2 months a year to binge watch on certain shows. But you glossed over a really important point I haven't seen given much attention: the pandemic. The pandemic was a huge boost for subscriber numbers for obvious reasons and we're now pretty much at the end of the pandemic (as far as staying indoors goes, anyway). That has to have an impact. Additionaly, Russia's invasion of Ukraine has cut off hundreds of thousands of subscribers due to the sanctions. IIRC I heard this was 700,000. If so, isn't down 200K still a net increase? The stock market routinely overbuys and oversells on good and bad news. It's the fear and greed cycle. And this honestly feels like an overreaction that'll be corrected as soon as Netflix spends some time controlling costs.
- abandonliberty 5y ago
  When everything was bundled together, we complained about paying for things we didn't use. Unbundling was initially cheaper because it was just extra profit on the side. Now, it's becoming the primary business model and has to stand on its own. It turns out economy of scale is real, and we've lost it. Other people were paying for our content before, but not watching it. How does real public educational content get funded in this new world? Most of us probably agree that there should be quality, unbiased content. Cashflow consistency has a value as well, so subscribing and unsubscribing creates a cost that needs to get covered by someone. Currently, the loyal subscribers. I'm not saying things can't improve, just that many unrealistic, entitled attitudes exist. Content is better now than before as providers have to compete more to get subscribers, so the value is greater.
  - nightski 5y ago
    This is looking back at cable with some serious rose tinted glasses. It’s nothing like you describe. Also nothing forces people to sub to all streaming services. We switch them up and pay a small fraction of the $150/mo our parents paid for cable.
stjohnswarts 5y ago
I suspect from the undercurrent people are doing it to force netflix stock down to buy low.
thawaya3113 5y ago
The problem is that Netflix’s valuation was based on the idea that they could raise prices without losing subscribers. That in turn was based on the experience with Amazon, which has raised the prices of Prime, products on its site, and the fees it charges its sellers all while still growing. Netflix’s valuation was based on the thinking that Netflix was now a necessity for people. But this shows it isn’t. In fact, the loss of subscribers is an even bigger deal because it suggests Netflix is eminently replaceable.
bitcuration 5y ago
Agreed with the author of this news, the content killed netflix. In the last two years of pandemic and WFH, more people paid attention to the online streaming and willing to spend more. It didn't take long before you'd learn who's content hold the better quality. Netflix has been relying on foreign contents approximately 70% if not 50% in the recent years. I wouldn't say netflix is completely out of favor at this point but definitely lost its edge comparing to others. It has occurred to me I could go on by weeks on HBOmax, Hulu and Amazon without missing Netflix, among which two are bundled with wireless plan and Prime membership, Hulu is cheaper with commercial. If it comes to paying full price I'd probably cut Netflix without a blink.

by zmmmmm 5y ago

MuffinFlavored 5y ago

> raised their prices - significantly https://help.netflix.com/en/node/24926 https://help.netflix.com/en/node/24926 $9.99, $15.49, and $19.99/mo What did their prices used to be?

squeaky-clean 5y ago
$8.99, $13.99, $17.99 since the last increase. But in 2018 the prices were $7.99, $8.99, $11.99. It's definitely gone up significantly in just a few years.
soneil 5y ago
I just took a search through my email to see what I've been paying in the past: 2013 joined at 7eur/month. Can't find the email from when it went from 7 to 9. May 2016 increased from 9 to 10. August 2019 from 10 to 12. March 2021 from 12 to 13. April 2022 from 13 to 15. (All prices euro and rounded up one penny). I cancelled the day the last hike arrived - it's the least amount of time between raises, as was the previous raise before it. At the same time, their offer is getting more and more disappointing, and they're talking publicly about reducing their content spend and the possibility of adverts. I feel like they're hooked on a growth bubble, and now that they're reaching market saturation the only way they can maintain that bubble is to squeeze it out of us - charge more, deliver less - which as a user is the complete opposite of value for money, so I'm out.

AzzieElbab 5y ago

One thing that always confused me about Netflix content is that how uniquely un-re-watchable all of it is. Literally, there isn’t one piece of Netflix content that I watched more than once. It is pure volume and even though some of it is good, they produce nothing lasting.

nine_k 5y ago

I wonder why the market reacted so harshly though, with NFLX losing 1/3 last Wednesday ($347 to $215).

killingtime74 5y ago
The market disagrees with the higher poster’s analysis
paxys 5y ago
The market reacted because a much higher subscriber growth was factored into the price. After the massive drop Netflix is still worth $100B and is one of the largest media companies out there, which is nothing to scoff at.
- vdfs 5y ago
  The forecast was to add ~2M subscribers, instead they lost 200K
- tomc1985 5y ago
  NFLX got clapped for Q4 2021 earnings too
- alot 5y ago
  Along with the huge miss this quarter they quided that they will lose another 2 million subs next quarter. That signals and end to growth and a rerating of the stock.
Silhouette 5y ago
Many of the big tech stocks are insanely overpriced according to traditional investment measures. The rational reasons to support those prices are expectations of similarly extreme future growth or a belief that it might be a speculative investment but the dollars will keep pouring in. The discussions this week aren't just a wobble, they're about whether Netflix can still generate that kind of extraordinary future growth. If there's even a strong hint that it might not then the speculative bubble bursts. If there's a serious expectation that it won't then the growth investors are out as well. One stock price crash, coming right up.

jurassic 5y ago

I completely agree. I was only lightly using Netflix so when they last raised prices it was the push I needed to actually cancel. The recent content they've rolled out doesn't justify the heftier price tag compared to competitors. I love the UX of Netflix, but content rules and they're losing that battle. I don't even want to try new shows because of their reputation for cancelling things unceremoniously.

stingraycharles 5y ago
> I don't even want to try new shows because of their reputation for cancelling things unceremoniously Ah, so I’m not alone in this! Nowadays, I typically only consider shows that have at least a few seasons, I will never ever try one with just one season. The chances of them killing it off are just too high, and that would ruin it completely for me. I like to binge watch, I can’t enjoy that when they keep killing off shows. It feels like a restaurant with only starters.
- Silhouette 5y ago
  It's an unfortunate self-fulfilling prophecy of the modern data-driven mindset. Sometimes the very act of collecting and acting on that data materially affects the data itself by creating perverse incentives. The two parent posters are far from alone in my experience. Lots of people are getting turned off by the variable quality and uncertain future of the home-made productions, which means lots of people are holding off starting to watch a show until it's somewhat established and had some positive reviews. If your management strategy is to measure early engagement with your own shows and viciously kill off anything that doesn't make the cut, and if your viewers know this, then you have defeated yourself no matter how good the show is or how popular it would naturally have become. A few years ago there was almost a trend for shows that weren't getting the numbers to get wrapped up with some sort of mini-series or TV movie so at least there was a chance for the production team to finish telling their story and give some closure for the fans (who might be fiercely loyal in sentiment even if too few in number to sustain the show). It's a little ironic Netflix would probably have been in a better position than anyone to adopt this kind of strategy and establish a reputation for being trustworthy and loyal to fans. Now it has the opposite reputation and we're openly speculating about whether it will ever recover.

zenithd 5y ago

hamiltont 5y ago

Think I read somewhere that of one of their content production differentiators is their direct-to-consumer approach. Classically lots of content was produced for the "average" consumer. Netflix can use their subscriber data to create low-cost content for extremely niche consumers, who might love that extremely relevant production (think super edgy, super graphic, super cartoon, etc - the type of extremes not covered by the average). Not sure how much this holds true anymore, as now many big players have direct-to-customer streaming, but just sharing since it was a neat thought when I first read it

AndrewUnmuted 5y ago
This seems like a way of sugar-coating the actual content strategy Netflix deploys, which has much more to do with product placement than it does content production. Their strategy is to align their content productions with the brands that best correlate with their subscriber base. In so doing, they can create lucrative deals with brands where their products are intricately woven into the stories/narratives of the show. As an example, Stranger Things featured an average of 9 minutes of product placement for each episode of their third season. [0] The company claims they did not receive any payments from brands for this placement [1], but they likely received other extremely valuable considerations in the form of payment instead. [0] https://www.ama.org/marketing-news/product-placement-in-stranger-things-3-valued-at-15-million/ https://www.ama.org/marketing-news/product-placement-in-stra... [1] https://www.fastcompany.com/90380266/more-product-placements-may-come-to-netflix-but-dont-call-them-ads https://www.fastcompany.com/90380266/more-product-placements...
- SturgeonsLaw 5y ago
  I hope those advertisers feel like they got their money's worth, because I can't remember a single brand from Stranger Things
  - AndrewUnmuted 5y ago
    How could you have missed all the Coca-Cola in that show?!

rdtsc 5y ago

> they raised their prices - significantly Yeah, and I was right on the edge, not really watching it enough to justify the previous, cheaper, price. When they raised the price it served as a motivation to cancel it. In a 6 months I might join for a bit to watch some newer shows, then probably cancel again. Raising prices works well perhaps if people are in love with the product or there is just no other alternative. But people have been auto paying and not really thinking much or using it, raising the prices is a decision point to re-evaluate the value of the service.

ryanSrich 5y ago
Yeah I’m surprised at how little I’m seeing about this. I canceled last month because of the price increase, and I would not have canceled if they hadn’t raised prices. At $9-$14 it’s fine if I only watch it once a month. But at $20 it’s no longer worth it.
- FridgeSeal 5y ago
  I recently got a new monitor, and new internet, so I’m finally able to watch 4K Netflix, I upgraded at right about the time the price rise went through, and must have glazed over the announcement, so I just went “oh right, that’s just got much 4K costs, ok”. Given the subsequent lack of actual 4K content, general lack of content, and the fact that I’ll be finishing the shows I’m watching means that I’ll likely join the lost-subscriber group in a week or 2.
- specialist 5y ago
  I'm now hopping between streaming subscriptions. Round robin style. eg When Apple TV accumulates enough new binge worthy stuff, I'll sign up for a month. So probably once a year. Ditto all the other streamers. It's now pretty rare that I'm compelled to see new OC apon release. Excepting The Orville, natch.
- 1123581321 5y ago
  If you were paying $9 or $14, your new price would have been $10 or $15.50. The people paying $20 were previously paying $18.

HNHatesUsers 5y ago

wallacoloo 5y ago

consumers don’t everywhere react instantly to price changes. the number of lost subscribers is likely to be greater than what you see today as consumers explore alternatives over time and change. though by how much i don’t know. (for example, it pushed me past the edge to install Jellyfin & friends, but i’m keeping Netflix as backup until i’m comfortable/confident with my new setup).

giantg2 5y ago

With the established content producers starting their own streaming services, or having more competition of buyers for their content, it seems Netflix has little choice but to move into production. Otherwise it would be a slow death as competitors move in and content prices are bid up. Just my guess though.

ConnorCallahan 5y ago

> question whether, now that they have moved so solidly into content production, Netflix is actually a scalable / viable company any more Netflix is a scalable company precisely because they produce content, when they are share other people's content any other platform can do that. But when they create their own content suddenly they operate based on a fixed cost rather than paying for other people's content.

wallacoloo 5y ago

> The there is definitely a question whether, now that they have moved so solidly into content production, Netflix is actually a scalable / viable company any more. When they were just sending other people's content around and doing it much cheaper and better that was innovative and different. to borrow cliched terms, big companies protect their position by either building a monopoly (Bell, your traditional telco) or building a moat (Apple). Netflix started with an effective monopoly on film distribution/streaming. at some point Disney & friends extended their moat vertically (Disney+), eating into the distribution layer that Netflix previously monopolized. perhaps leadership understood the monopoly would only ever be temporary and decided to build out their internal production house as such. whatever the case, Netflix still has the possibility of transforming this into a moat that stands alongside the other players in this space. maybe it can exist as this, but it will surely be less profitable than its monopoly days.

xyzzy21 5y ago

This is certainly part of it. There are also those who are not happy with woke content and "Anything Silicon Valley/Tech" and are walking away. Disney has the same thing going.

DonHopkins 5y ago
Racist homophobic bigots hate "woke" content, but so what? Who wants those snowflakes as customers anyway, who are so terrified of being exposed to cartoons of Mickey Mouse and Pluto having steamy hot gay sex? Let them try to cancel culture and walk away from scary cartoon animal sex all they want. How's Trump's "unwoke" social network working out? https://www.vanityfair.com/news/2022/04/ted-cruz-mickey-pluto-disney-dont-say-gay https://www.vanityfair.com/news/2022/04/ted-cruz-mickey-plut... >TED CRUZ WARNS DISNEY PROGRAMMING WILL SOON DEPICT MICKEY AND PLUTO F--KING >The senator from Texas thinks the company’s opposition to Florida’s “Don’t Say Gay” law means it’s going to introduce X-rated content featuring animated characters “going at it.”
- ehvatum 5y ago
  > Racist homophobic bigots hate "woke" content There’s no accounting for taste. You should not be so fast to hate; it prevents you from understanding that which you wish to change. After all, we’re talking about entertainment, not war. Aren’t we?
  - Throwawayaerlei 5y ago
    Actually, we are talking about war, a cold civil war in the US and a lot of the West, and often hot shooting ones in the countries in which we foment color revolutions, the Ukraine being the current extreme example of that.
- downrightmike 5y ago
  He hopes in his heart of heart to not have to skip down to cancun to use grindr
- IMTDb 5y ago

beloch 5y ago

They've lost 200K subscribes... so far. The full effect of price increases will take time to fully play out, plus the effects of implementing commercials have yet to be seen. Also, it remains to be seen how other streaming services will respond. Will they raise prices and add commercials too? If Netflix becomes the one streaming brand most associated with actions hostile to their viewers, this could be the beginning of a long decline.

loceng 5y ago
This 200k subscribers number is missing the elephant in the room. They expected 2.5 million new subscribers. They didn't get those 2.5 million new subscribers and actually lost 200k, so they're technically -2.7 million subscribers. This may have also triggered an exodus of subscribers too, even if Netflix doesn't do anything additionally stupid to turnoff consumers.
- FridgeSeal 5y ago
  I know it’s commonly used logic, because announcements and expectations and whatnot, but I find the logic of: > They didn't get those 2.5 million new subscribers and actually lost 200k, so they're technically -2.7 million subscribers To be extremely questionable, if not outright incorrect. They didn’t lose something they didn’t have. 2.5m people didn’t leave, 200k did. Sure, they didn’t reach a target of 2.5m new users, but that’s not the same as losing them. I know, shareholder announcements/analysts predictions etc, I know I’m not going to change that logic, but I still think it’s bad logic.
  - vmception 5y ago
    I think it’s that the logic only matters to shareholders who are willing to pay a premium price for the shares based on trajectory. Mess up the trajectory, mess up the share price.
  - deepzn 5y ago
    They actually lost 700K subs to Russia, when they stopped the service there, and some around EMEA too. They actually added 500K subs net minus Russia impact.

bobitsaboy 5y ago

Definitely a part of it for some. Me, I cancelled due to the low quality of their catalog. A decade or so ago, they had a really strong library of media. Now they don't. What they spend their money on, I find to be severely lacking.

deleted 5y ago
[deleted]
i2shar 5y ago
Few months ago I rage quit Netflix because their shows would start autoplaying and nothing I did could disable that. I couldn't read one synopsis distraction free or browse without having to constantly click my GTV remote just to stop the friggin thing from playing. WTF! I'd like to think there were more like me who voted by cancelling their subscriptions. I hope PMs at Netflix who forced this onto their users lost their jobs.
- WelcomeShorty 5y ago
  Sign in to Netflix. Click the down arrow next to the Profile box. Choose Manage Profiles and select a profile. Under Autoplay controls, uncheck Autoplay next episode in a series on all devices. Also uncheck Autoplay previews while browsing on all devices. Choose Save.
  - i2shar 5y ago
    Had done that (obviously), didn't work on Chromecast with GTV. Had called customer support and filed a technical ticket. Nothing happened. Too late now.
fmajid 5y ago
Same here. There is literally nothing I want to see on Netflix since The Witcher season 2 ended. Same with Disney+. Oddly enough Amazon has the most compelling content, and I'd pay for Prime even if they didn't offer streaming, so it's essentially free for me.
5y ago

accountofme 5y ago

Netflix has good points: best ui. Good library. Their bad points is what worries me for the service: poor quality of new content. I have not seen anything that wows me for quite some time at least for my preferences (SciFi). So maybe it is for Netflix (the sky falling) things that start as a trickle might end as a flood.

castwide 5y ago
I feel like Netflix has been declining for years. A decade ago, their recommendation algorithm was phenomenal. Today, both their library and their recommendations are severely lacking. I'm not sure how much longer I'll bother to subscribe.
- dumbfounder 5y ago
  This is it for me. Maybe they have decent content but I can’t seem to find it easily anymore. Netflix was a necessity once upon a time, but now I am on the edge of canceling.
bushbaba 5y ago
Funny as paramount+ has done a better job of adding new content than netflix these past few months. The Halo TV show and Picard while C to B- are still miles better than much of the newer netflix content.
srj 5y ago
Check out "Dark". I can't explain it without spoiling things but there's a significant twist a few episodes in and it goes down a wild sci fi path.
- accountofme 5y ago
  Thanks for the suggestion! I'll give it a look!
- maleldil 5y ago
  The first season of Dark was released in 2017. I believe the "shit content" phase got really strong in 2020. Which is also when Dark's last season was released, and it's the weakest (IMO).

ftlio 5y ago

I can't think of anything I care about that's on Netflix. I also can't imagine cancelling it... There's always something. Between my wife and I both barely caring, they have my money for years. I imagine they'll survive, and if content doesn't turn around, they'll be bought in some final round of media conglomerates mergers, where I'll be even less able to get rid of it.

hyperpallium2 5y ago

Surely stay-at-home covid was a boon to Netflix?

jmyeet 5y ago

You focused on price and I think that's a significant factor. Where once Netflix was $8 not really that long ago, it's now $15.50, which is more expensive than HBO (and HBO Max with the merger has an even deeper catalog than it did in the HBO Now time, even though the HBO Now software and website was IMHO much better). What these media companies seem to want is for us to pay $100/month in various streaming services rather than the $80/month we were paying for cable because, hey, we should pay for the privilege of unbundling right? I refuse. Netflix is no longer an automatic renewal. I'll sign up for it 1-2 months a year to binge watch on certain shows. But you glossed over a really important point I haven't seen given much attention: the pandemic. The pandemic was a huge boost for subscriber numbers for obvious reasons and we're now pretty much at the end of the pandemic (as far as staying indoors goes, anyway). That has to have an impact. Additionaly, Russia's invasion of Ukraine has cut off hundreds of thousands of subscribers due to the sanctions. IIRC I heard this was 700,000. If so, isn't down 200K still a net increase? The stock market routinely overbuys and oversells on good and bad news. It's the fear and greed cycle. And this honestly feels like an overreaction that'll be corrected as soon as Netflix spends some time controlling costs.

abandonliberty 5y ago
When everything was bundled together, we complained about paying for things we didn't use. Unbundling was initially cheaper because it was just extra profit on the side. Now, it's becoming the primary business model and has to stand on its own. It turns out economy of scale is real, and we've lost it. Other people were paying for our content before, but not watching it. How does real public educational content get funded in this new world? Most of us probably agree that there should be quality, unbiased content. Cashflow consistency has a value as well, so subscribing and unsubscribing creates a cost that needs to get covered by someone. Currently, the loyal subscribers. I'm not saying things can't improve, just that many unrealistic, entitled attitudes exist. Content is better now than before as providers have to compete more to get subscribers, so the value is greater.
- nightski 5y ago
  This is looking back at cable with some serious rose tinted glasses. It’s nothing like you describe. Also nothing forces people to sub to all streaming services. We switch them up and pay a small fraction of the $150/mo our parents paid for cable.

stjohnswarts 5y ago

I suspect from the undercurrent people are doing it to force netflix stock down to buy low.

thawaya3113 5y ago

The problem is that Netflix’s valuation was based on the idea that they could raise prices without losing subscribers. That in turn was based on the experience with Amazon, which has raised the prices of Prime, products on its site, and the fees it charges its sellers all while still growing. Netflix’s valuation was based on the thinking that Netflix was now a necessity for people. But this shows it isn’t. In fact, the loss of subscribers is an even bigger deal because it suggests Netflix is eminently replaceable.

bitcuration 5y ago

Agreed with the author of this news, the content killed netflix. In the last two years of pandemic and WFH, more people paid attention to the online streaming and willing to spend more. It didn't take long before you'd learn who's content hold the better quality. Netflix has been relying on foreign contents approximately 70% if not 50% in the recent years. I wouldn't say netflix is completely out of favor at this point but definitely lost its edge comparing to others. It has occurred to me I could go on by weeks on HBOmax, Hulu and Amazon without missing Netflix, among which two are bundled with wireless plan and Prime membership, Hulu is cheaper with commercial. If it comes to paying full price I'd probably cut Netflix without a blink.