Majority of people cancelling Netflix had subscribed for over a year | Ratings/Measurement | News | Rapid TV News
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It has always seemed churn resistant but with pressure coming from the AVOD industry from the likes of Tubi, and now a whole host of SVOD rivals, Netflix is now the subject of customer retention and research has revealed that those dropping the service are likely to have been long users.
Killthe cablebill NETFLIX 19Nov2019
Analysts from KilltheCableBill, partnering with an unaffiliated third-party data analytics firm, surveyed over 1,000 customers who have cancelled Netflix in recent months, aiming to identify what types of people were leaving Netflix, why they cancelled their service, and if they had any plans on returning in the future.

Explaining the rationale for its research, KilltheCableBill noted that 2019 has arguably been Netflix’s most challenging year since the streaming service became a standalone offering over eight years, facing in addition to the increased competition a number of headwinds such as slowing US subscriber growth throughout the year. In its recently announced third quarter results, Netflix advised shareholders that it had not been retaining US customers at its usual rate and that it was likely to see fewer new subscribers in the fourth quarter. Q2 2019 saw the first US fall in subscribers since 2011.

The research data showed that 63% of those who unsubscribed had been using Netflix for more than a year, with only 7% not taking up the service after the free trial first month. Even though 58% of subscribers said that they didn’t know if they would sign up for Netflix again any time soon, a quarter said that the definitely wouldn’t be and only 17% said they’ll return for sure.

Virtually half of those who cancelled cited the latest price increase as the key factor in doing so. KilltheCableBill reasoned that suggested there was no guarantee Netflix would be able to win them back especially as the likes of Apple TV+ and Disney+ were noticeably cheaper. Just over two-fifths of those who have recently cancelled indicated they aren’t pleased with Netflix’s current content slate which has been increasingly focused on its original series. Around the same percentage of recent former subscribers said they were subscribing to other streaming services instead.

For all this, KilltheCableBill's survey concluded that there was no need for Netflix to panic, just yet anyway. It noted the continued strong growth of Netflix in non-US markets but said that the company could not afford to ignore its domestic churn issues. The research concluded by suggesting that the pressure will be on for Netflix to deliver content that both attracts and retains subscribers.