The world’s most popular streaming service, Netflix is set to lose up to 700,000 subscribers by the end of 2023.
The UK user base dropped from 14.2 million to 13.7 million in 2022. It is said that this is due to the current cost of living crisis hitting the UK.
The newly introduced ad-supported service is yet to win over users with 500,000 viewers switching off in 2022. Its lowest membership is £4.99 per month, but this doesn’t appear to have been successful in helping Netflix to retain its subscribers.
As the population cuts back on spending, research firm Ampere Analysis predicts that Netflix will return to growth in 2024 when it’s said that the UK economy will also see an uplift.
“Given the wider economic pressures the UK is facing I’m not expecting Netflix to go back to growth in 2023,” says Richard Broughton, director at Ampere Analysis. “Our base assumption is Netflix moves back into growth with the UK economy, which is likely to be 2024.”
Other streaming services, however, have seen growth with Amazon Prime increasing its subscribers by 300,000 in 2022. Disney+ are doing even better with predictions saying it will add a further 1.4 million subscribers to its list. This will take the newest streaming platform to 6 million subscribers.