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January 25, 2022

Netflix reported significantly reduced new subscriber signups for Q4 last week. Not only did the news tank its share price by 20% in after-hours trading, but it also raises a very good question: Where are all the people?

Streamer's Spotlight: If Not Netflix...What?

Netflix is now a household name. That much is certain. Most people, even if they don't have Netflix or even have access to Netflix, are familiar with the brand name and even some of the content that it offers. But with Netflix reporting a slowdown in new signups, there are a few takeaways to consider. 

Are people signing up elsewhere?

The answer to this is both yes and no. Netflix can't grow infinitely. At some point, it's going to start maxing out the new signup growth, especially in its home market. The company has been working on expanding internationally, but even its international signups have slowed. To be clear, over 2 million people became new Netflix subscribers in Q4 of 2020. That's more subscribers than most streaming services have in total. But for a company like Netflix, that's bad news. It means interest is waning, even in its growth market. 

Realistically, though, Netflix isn't the only one interested in its growth markets. Homegrown options are flourishing, and Netflix competitors, like Disney+, are also expanding internationally. Take India, for example. Netflix is attempting to make huge gains there, but between 2020 and 2021, 7 new services became available in the country, including Discovery+. And while Netflix has a must-see catalog of original content, its pricing is high.

Netflix raised prices (on some of us)

Netflix recently announced a price increase. This wasn't a big surprise, and it was within the expected range. But consumers are feeling the pinch of inflation pretty much everywhere, and they're less eager to sign up to pricier services when cheaper options are available and they can still share passwords. As it were, Netflix is probably looking to formalize a crackdown on password sharing outside of households, as it started testing this concept last year.

Who's adding subscribers?

All of the smaller, but still big names you can think of have been slowly adding subscribers. Disney+, Discovery+, HBO Max. The competition has become dense enough of an interest to draw away potential new subscribers for Netflix. And as long as they can compete on price and catalog quality, Netflix may continue to see its subscriber growth flatline.

This Week's Streaming Guide

Aziz Ansari returns to Netflix

After nearly getting canceled for misconduct, the comedian returns with a Netflix special, Aziz Ansari: Nightclub Comedian. Available today (Jan. 25). 

Curling fan? American Rock Stars follows US curling team

US Curling is going for gold in the 2022 Olympics. Follow their journey on Peacock this Wednesday (Jan. 26) on Peacock. 

The 2022 Olympics are coming! Here's how to watch

Don't miss out on any event with this guide to watching the 2022 Winter Olympics. 

Roku releasing its first-ever adult animation

The animated series, "Doomsland", is available to stream on the Roku Channel this Friday (Jan. 28).

News and Industry Developments

Netflix stocks drop after service predicts subscriber growth slowdown

The company is predicting it's going to grow much less into 2022. - NYT

Apple is ready to spend billions on live sports streaming

The demand is high, and Apple has deep pockets. - SportsProMedia

Disney is planning a major streaming business reorganization

That includes adding a large international footprint for Disney+ - TechCrunch

Sling TV is offering a free trial for the first time in over a year

Free trials are going the way of the dinosaur, but Sling TV is reviving them, at least temporarily. - WorldSoccerTalk