Everything suggests that Netflix has pulled its head above water and that the online streaming service is doing perfectly well. This, after a mixed period where millions of subscribers did not renew their subscriptions. Two of Netflix’s biggest original series have just launched new seasons eagerly awaited by fans.
On one side we have Ozark, with the second half of its fourth and final season. And on the other, there is especially Stranger Things 4, which could become the biggest hit in Netflix history. The series should certainly dethrone Squid Game to become the most watched series of all time on the platform. Yet despite these recent successes, Netflix will continue to lose subscribers. And the streaming platform will even lose a lot more than expected.
Barclays lowers the Netflix target and observes greater than anticipated subscriber losses
The indiscretion comes straight from Barclays and an analyst named Kannan Venkateshwar. According to him, Netflix will lose many more subscribers than initially expected. And this despite the success of the new seasons of Ozark or Stranger Things; which have both established significant audience records. The analyst estimates that Netflix has lost up to 2.8 million subscribers; which is well above the loss of 2 million subscribers that the streaming giant had expected.
“Despite a solid slate of returning shows, like Stranger Things, Ozark and Peaky Blinders, the app’s download and engagement metrics are trending down. The release of Stranger Things led to a spike in the second quarter, but the trend quickly faded in June,” explained the Barclays analyst.
Still, according to Netflix, it will have an equally difficult third quarter and things could get even worse until 2023, with even more subscriber losses. It will then be necessary for “Netflix to rebalance its content offer towards quality, in particular given the competing offers from Disney, Apple, HBO or even Amazon” warned the analyst.