Netflix has lost subscribers for two quarters in a row. Its Q2 results revealed a loss of one million subscribers (it had expected to lose two million). This has clearly shaken the streaming giant and it is looking to make changes. These include the introduction of a cheaper ad-supported tier - something it has long rejected but is now expected to implement next year. There has been a backlash by some against the move.
There is nothing wrong with adverts. Far from it. Indeed, along with wonderful paid subscribers, they make this podcast and newsletter possible. Both are greatly appreciated. However, even if it didn’t say so explicitly, Netflix always indicated to users that subscriptions meant you didn’t need to watch adverts and that this provided a better experience. As more services have entered the market, many at more competitive price points, the company has found its position under threat.
Has Netflix, and streaming in general, finally hit its peak, or is this just a reasonable recalibration from a company that has led in its field for years? Tom Merritt joins host Charlotte Henry to discuss what the results might mean as well as Tom’s new show “A Word with Tom Merritt” and the value of in-depth conversations.