Since the competitors are bifurcating their roots, it is getting difficult for Netflix to maintain its tenacity. Netflix incurred tremendous losses, with a net deficit of 200,000 subscribers in the first quarter of this calendar year. For so many years Netflix remained one of the most loved and admired OTT platforms in the country and around the world. Netflix’s rise in the realm of the entertainment industry persuaded other major studios in the Hollywood industry to follow enhanced tactics, so as to be able to compete with its acuity of displaying multiple episodes that could be watched in rapid succession. Netflix was reigning in the entertainment industry with its multifaceted aids. Whereas, now, with the new entrants and top five competitors, who are sporting their own aids, the company may be compelled to follow a different path to once again make the traditional media companies successful.

According to the sources, Netflix quoted the loss of its subscribers being an outcome of numerous factors, which include:

• Increased Competition: Over the years several Netflix rivals have come up with amazing content. The top 5 competitors of Netflix are Amazon Prime, HBO Max, Disney+, Hulu and Peacock. Not all these platforms are available worldwide, whereas, some of these OTT platforms are known for their unique content as newer and fresh content, low price plans, large libraries, diversified content and quick updates of new episodes.
• Geopolitical Tensions: Caused by the war in Ukraine that lead to the suspension of services in Russia, which resulted in a loss of 7,00,000 subscribers. Reportedly the company has already predicted a loss of 2 million subscribers in the coming quarter. Factors including slow economic growth, rising inflation and transnational events such as Russia invading Ukraine have resulted in an unbearable loss.
• Covid related turmoil: Some serious disruptions from COVID are also having an impact on the continuous losses. Account sharing across households and witnessing a huge growth during the 1^st two years of pandemic breakdown “which gathered a lot of loud applause”, were also a few reasons behind the company losing its subscribers.

In addition to Netflix’s 222 million paying households, there are evaluations that Netflix is being shared with more than 100 million households, including over 30 million in USA and Canada region, the company declared. Netflix is now trying to curb the same as there are over 100 million unauthorized users. To control this, the company has started doing market analysis in 3 markets in Latin America with an option or a choice of allowing current members to pay for additional households.

Although, the CEO Reed Hastings claimed that the company could also take a chance with an ad-supported, low priced version of its service, which is being done by its key rivals at the moment.

Netflix claimed that it was noticing a good growth and progress in the Asia Pacific region in a number of markets including India. Netflix also cut down the previous subscription prices last December from INR 199 per month to INR 149 per month in India, which could be an authentic reason for it to keep persistently flourishing in the country.

-Manisha Persheera