I analyze the Netflix crisis in Spain: 1 million subscribers lost by not being able to share outside the home
They have not been easy months for Netflix Spain: our country was one of the first to prohibit account sharing away from home, which meant that it was impossible for a group of 4 friends to pay half the subscription. The number of simultaneous screens was also reduced to 3 in the most expensive plan, and there was even a boycott on social networks for all these measures.
What was the goal of Netflix? Of the almost 10 million subscribers that Netflix had in Spain, a part did not pay as such when sharing a profile. Therefore, the number of active users was lower. With this movement, the streaming platform would achieve, on the one hand, encourage ‘ghost’ subscribers to pay their monthly fee. And on the other hand, increase your income.
It’s too soon to know if this has worked for them, but Bloomberg has confirmed this morning that Netflix has lost 1 million subscribers in Spain in recent months. In other words, a tenth of its users have abandoned the streaming platform in 2023. And although Netflix globally has grown (1.75 million more users worldwide in the first quarter of 2023), in our country has sunk. What if we analyze the factors that have caused the stampede of more than 1 million people from the most viewed streaming app in Spain?
The reasons why Netflix has lost 1 million subscribers in Spain
First reason: The ‘anti account sharing’ plan away from home
The first reason is the most obvious: the ‘anti account sharing’ plan away from home has not worked as expected. It has not been a failure, because Netflix would have backed down, but if 1 million subscribers have left, it is because they have not been tempted by the rest of the individual plans What does the streaming platform offer? And this is a problem that may worsen over time, because sooner or later, many users will stop sharing an account for a thousand reasons, and the number of casualties may be even higher.
Second Reason: Unattractive Basic Plans
Linking to the previous reason, basic plans are unappealing. For example, him basic ad-free plan For 7.99 euros per month it offers HD playback quality (720p) and 1 simultaneous screen. That is to say, watching a series with him is like going back to the year 2010. And the basic plan with advertisingAlthough it costs 5.49 euros per month and offers Full HD (1020p) quality, it cannot be used without an Internet connection as it does not offer downloads. How to catch users who are forced to stop sharing, with plans that will pay more than before, for inferior quality?
Have we stopped saving with Netflix by not being able to share an account with friends?
Third reason: The competition?
Finally, the competition is increasingly aggressive: Disney Plus and HBO Max will not offer as many series and movies as Netflixbut their products make more noise. Prime Video offers a streaming platform, free shipping on Amazon, access to Prime Music and many other functions for only 4.99 euros per month. AND SkyShowtime It is available in Spain at 5.99 euros per month (until Tuesday, April 25, at only 2.99 euros per month). I mean, there’s a lot of competition.
In summary, Netflix You should analyze if the plan of prohibiting account sharing with friends is beneficial for the platform, or instead, they should return to the previous model even if the number of active paying users is lower.