In May, it was reported that lost 200,000 subscribers in the first quarter of 2022. According to a new report, the streaming giant lost 2% of its market share in Q2, 2022, while its competitors experienced growth.
Netflix lost 2% market share in Q2 2022
As reported by JustWatch (9to5Mac), Netflix continues to lose subscribers while the streaming market remains stable and its competitors experience growth. In the second quarter of this year, streaming services like Paramount+, Apple TV+, Hulu, and Disney+ continued to gain subscribers.
Netflix lost 2% of its market share in the United States in Q2, 2022. It currently has a 21% market share, however, that figure is expected to decrease even further. Here is a list of major streaming services in the United States and their current shares in the streaming market:
- Netflix: 21%
- Amazon Prime Video: 20%
- HBO Max: 15%
- Disney+: 14%
- Hulu: 10%
- Apple TV+: 6%
- Paramount +: 4%
- Others: 10%
JustWatch adds that Netflix only holds a 1% margin over Prime Video, signaling it may lose its spot as the top streaming service soon.
The streaming wars continue to heat up, with Netflix losing -2% market share in Q2. Rivals such as Apple TV+, Disney+, and HBO Max capitalized on the losses of the market leader, and each added +1% in Q2. Netflix now only holds a 1% margin over Prime Video, and there is just a 5% margin between HBO Max and 2nd place.
Netflix has taken such a significant hit from losing subscribers that the company had to increase the cost of its subscription plans bringing its basic plan to $9.99/ month (from $8.99), its standard plan to $15.49/ month (from $13.99), and its premium tier to $19.99/ month (from $17.99).
In addition to this, the company recently announced that it would be cracking down on password sharing which will see users cancel their subscriptions or opt for a cheaper subscription plan.
Most recently, it was revealed that the company plans to launch a lower-priced ad-supported tier for users so that it can further monetize the platform. Attracting new users through a low-cost tier while generating revenue from ads is ultimately good news for viewers as more money ultimately means the company will have a bigger budget to produce more original shows like Stranger Things, Sex Education, and more.