Netflix revealed it lost another 970,000 subscribers between Q1 and Q2 2022
In light of its ongoing subscriber problems, Netflix’s rivals have dealt the world’s largest streamer another devastating blow. Despite a minor gain in its overall revenue, Netflix disclosed yesterday (Tuesday, July 19) that it lost another 970,000 customers between Q1 and Q2 of 2022. This is a huge loss that will undoubtedly hurt the company’s finances at some point. Although Netflix made an effort to spin the situation favorably, highlighting Stranger Things 4’s enormous popularity and a debut date for its ad-supported membership tier, the streaming behemoth took another knock as its Q2 earnings report was being released. And this time, Netflix’s main rivals are responsible for its most recent gut punch.
Leading analytics firm Parrot Analytics claims that for the first time in streaming history, Netflix’s six main rivals—including Disney Plus, Prime Video, and HBO Max—posted a combined global demand share higher than Netflix. Hulu, Paramount Plus, and Apple TV Plus, Netflix’s three main streaming competitors, combined for 45.1 percent of the market for streaming original content. Netflix, on the other hand, could only muster 41.2%, a significant decrease of over 14% (from 55%) since Q2 2020.
The graph above demonstrates that Netflix is still by far the most widely used streaming service. In the grand scheme of things, Prime Video trails Disney Plus, HBO Max, and the rest with a global demand share of 11.3 percent. However, the total global market share of Netflix’s rivals represents a critical turning point in streaming history. Every other streamer, excluding Netflix and Prime Video, saw a rise in the demand for their own original content on a global scale. Disney Plus’ market share increased from 8.8% to 9.9%, Paramount Plus’ from 3.8% to 4.6% (a personal best for the new kid on the block), Apple TV Plus’ from 6% to 7%, and HBO Max’ from 6.7% to 7.2%. Netflix was the only one of the top six that said its share of the global demand for streaming originals went down.
So Netflix really needs to step up its game in the area of original films and programming. There are possible success stories on the horizon. For many years to come, Ryan Gosling and Chris Evans’ upcoming television series, The Gray Man, may provide Netflix with a truly outstanding film franchise to produce. However, there are many reality TV shows available, a dearth of interesting rom-com genre fare, and the cancellation of fan-favorite shows that are likely turning viewers off for every movie or TV production that Netflix’s subscriber base wants to watch.