Netflix…What’s Going On?

Sarah Maginnis, Author

Netflix is projected to lose over 4 million subscribers in the upcoming year 2021, due to popular shows and movies being removed, as well as strong competitors such as Prime Video and Disney Plus increasing in popularity. 

 

Due to quarantine and all the stay at home orders, people are left with very limited things to do. Watching movies and tv shows have become the most exciting way to pass time for most families, and because of this, streaming services are having to compete in order to keep their subscribers. 

A senior at Skyline High School, Cameron Guilbert, was interviewed to give his thoughts on why Netflix could be losing business. 

“I’ve heard lots of rumors going around that Netflix could be raising their subscription price by next year,” Guilbert said. “Having to pay for so many different streaming platforms is already expensive, and this new raise in price might be what makes my family have to choose only one.”

The rumors that Guilbert speaks of are in fact true. As of right now, Netflix has a standard price of $14 a month and since last year, it has already been raised $1 per month. The premium subscriptions are also being increased, from $16 to $18 a month. This surge in price has caused over 49% of subscribers to cancel their subscriptions to Netflix. 

 

The increase in subscription price was implemented to counteract the overwhelming $16 billion loss in market value by Netflix. Overall shares have taken a hit by over 10% after the company reported all of its lost subscribers. 

 

In addition to the raise in price, Netflix has also been canceling popular tv shows and movies. Another Skyline senior, Alan Kyaw, was interviewed to share his opinion on Netflix’s lack of content. 

 

“My family initially subscribed to Netflix because of the good tv shows, such as ‘The Office’ and ‘Friends’,” Kyaw said. “Now we feel like there is no point to having it, since they took off all the shows we like. ‘Friends’ was taken off at the beginning of 2020, and ‘The Office’ is going to be taken off in 2021.”

 

Similar to Kyaw, it is estimated that over 42% of Netflix subscribers canceled their subscriptions due to lack of content and while Netflix is losing subscribers, its competitors are steadily gaining popularity. 

 

“I don’t see why I should continue to pay more for Netflix, when it doesn’t even have the shows I want to watch anymore,” Kyaw said. “My family is considering getting Disney + or Prime Video since it’s cheaper and has way more options than Netflix.”

 

As time progresses Netflix is continuing to lose business, going all the way from the best streaming program, to struggling to avoid bankruptcy. In order to keep up with its competition, Netflix is going to have to fight hard to find new and exciting ways to keep its subscribers.