Rising costs and economic uncertainty are contributing to a reconsideration of streaming’s future. Streaming services are under pressure to attract consumers and retain them, all while inching toward profitability. As the category’s leader, these pressures affect Netflix acutely. Its recent stumbles open the door for competing players to attract viewers to emerging services.
- Netflix will look to restrict free viewers as its subscriber numbers fall, but it’ll face headwinds in doing so. Netflix wants to crack down on password sharing among subscribers by charging more for those who share a password outside their household. But we don’t expect account sharing blockages to immediately crank up—or to stay there. Netflix is likely to encounter resistance from users: 45% of US Netflix users said they're “very likely” to cancel their subscription if Netflix begins charging extra for account sharing, per a March 2022 CivicScience survey.
- Netflix will explore new business opportunities beyond streaming subscriptions. The company will continue to build a video game business; it has tried syndicating shows and theatrical releases for some of its content, and it will explore alternative revenue streams as a way to supplement subscription revenues.