Netflix seems to be having some difficulties in the UK. Faced with rampant inflation, many British subscribers have cancelled their accounts. The American streaming giant is also being jostled by its competitors, who are managing to maintain or even gain subscribers.

In two years, the American giant could lose 700,000 subscribers in the UK, according to the predictions of some analysts, quoted by The Guardian. Netflix reportedly lost 500,000 subscribers in the UK in 2022 and could lose 200,000 more in 2023.

For the first time in a decade, the streaming platform announced that it lost 200,000 subscribers worldwide in the first quarter of 2022, compared to the end of 2021. The platform also lost 700,000 subscriptions in Russia last year after its service was suspended. In 2021, Netflix gained "just" 800,000 subscribers in the UK, its worst score in the country since 2012. Could this be a sign of impending decline?

According to Ampere Analysis, the number of Netflix subscribers in the UK fell from 14.2 million to 13.7 million in 2022. The US giant is expected to be the only major streaming service to experience such a decline, The Guardian reports. On the other hand, Prime Video has seen its subscriber base grow in the UK, from 12 million to 12.3 million, and is expected to gain 100,000 subscribers in 2023. Meanwhile, Disney+ is expected to boom with 1.4 million more subscribers, bringing the total number of subscriptions in the country to 6 million by 2023.

Despite a growing offer, with series that regularly prove viral hits, like "Dahmer - Monster: The Jeffrey Dahmer Story" or the fourth season of "Stranger Things," many users have lamented the service's price hike in the United Kingdom and Ireland, as well as Netflix's decision to charge a fee for account sharing. The platform has also bet on a new offer that is cheaper but features advertising. A strategy that could pay off, but not in the immediate future, according to Ampere's estimates. Netflix could gain 4% more subscriptions by 2027, or 255 million, compared to 246 million without the new offer. The streaming giant's revenues could reach US$43bil worldwide in 2027, versus US$40bil without advertising, which could bring in US$7bil while subscriptions are expected to bring in US$36bil .

"Given the wider economic pressures the UK is facing, I’m not expecting Netflix to go back to growth in 2023," Ampere Analysis director, Richard Broughton, told The Guardian. "Our base assumption is Netflix moves back into growth with the UK economy, which is likely to be 2024."

 - AFP Relaxnews