Netflix is rapidly losing long-term users, those who have been with the streaming service for more than three years, adding to the company's troubles as it struggles with halted growth and a slowing revenue stream. According to recent data published by The Information, users who have been Netflix subscribers for more than three years accounted for 13% of cancellations in the first quarter of this year. Antenna, a US-based analytics firm, provided data to The Information.
Overall cancellations increased to 3.6 million people in the January-March period, up from 2.5 million cancellations in the previous five quarters. In the midst of the cancellations, new accounts account for a lesser percentage of the total, which is another concern for Netflix, which is battling to keep subscribers for longer periods of time. According to the report released on Wednesday, new customers accounted for nearly 60% of cancellations in the last quarter. Netflix has cut off over 150 staff, mostly in the united states, due to weak revenue growth.
"As we have stated in relation to earnings, our slowing revenue growth means we must also decrease our expense growth. We are laying off approximately 150 employees today, the most of whom are situated in the united states "According to reports on Tuesday, a Netflix spokeswoman said. "These changes are generally motivated by business needs rather than individual performance," the corporation stated, "which makes them more difficult because none of us want to say goodbye to such terrific colleagues." Netflix's stock dropped 20% after the company disclosed a 2 lakh paid subscriber loss in the first quarter of 2022, its first in more than a decade.
Overall cancellations increased to 3.6 million people in the January-March period, up from 2.5 million cancellations in the previous five quarters. In the midst of the cancellations, new accounts account for a lesser percentage of the total, which is another concern for Netflix, which is battling to keep subscribers for longer periods of time. According to the report released on Wednesday, new customers accounted for nearly 60% of cancellations in the last quarter. Netflix has cut off over 150 staff, mostly in the united states, due to weak revenue growth.
"As we have stated in relation to earnings, our slowing revenue growth means we must also decrease our expense growth. We are laying off approximately 150 employees today, the most of whom are situated in the united states "According to reports on Tuesday, a Netflix spokeswoman said. "These changes are generally motivated by business needs rather than individual performance," the corporation stated, "which makes them more difficult because none of us want to say goodbye to such terrific colleagues." Netflix's stock dropped 20% after the company disclosed a 2 lakh paid subscriber loss in the first quarter of 2022, its first in more than a decade.
