If you’ve been following Netflix recently, you’ll know that the streaming service is currently in trouble.
According to data, Netflix experienced 3.6 million subscription cancellations in the first quarter of 2022, which is more than one million more than the company experienced in the first and fourth quarters of 2021. This is a strong indication that Netflix is losing its dominant position in the streaming war.
While Netflix’s demise has fueled speculation about whether the SVOD (subscription video on demand) industry has peaked and is beginning to decline, new Antenna data suggests otherwise. Antenna discovered that Premium SVOD subscriptions in the United States increased by +4.0 percent quarter over quarter and by +24.7 percent year over year.
According to the research, there were 37.4 million new gross SVOD customers and a loss of 29.8 million subscribers, for a total of 7.7 million new subscribers in the first quarter of 2022.
The 37.4 figure is consistent with the previous two quarters but significantly higher than the 2019 figure (before Covid-19). The expansion was largely driven by new services Peacock and Paramount+, which added 6.1 million or more U.S. subscribers.
In comparison, there were 10.3 million subscriptions in the first quarter of 2019 when the market was dominated by Netflix and Hulu (services like Disney+, Peacock, and HBO Max did not yet exist). The massive increase represents a 54 percent compound annual growth rate over three years.
While subscription growth is strong right now, so are cancellations. There were just under 30 million cancellations in Q1 2022, which is 12% more than any previous quarter and 4.5 times the volume seen three years prior.
The cancellations may not be cause for concern because new subscriber additions indicate that consumers are bouncing around, also known as churn and return. In the third quarter, Peacock, and Disney+ accounted for 51% of all new sign-ups.
Furthermore, the three mentioned services accounted for a sizable portion of new sign-ups for churned Q1 2022 Netflix users.
To read our blog on “Netflix is said to be considering livestreaming,” click here
