Storm clouds continue to gather for Netflix. Analyst Vijay Jayant of Evercore ISI has released new data regarding the service’s download activity for the month of June. Jayant says that Netflix app downloads slid for the month, despite the return of the service’s most high-profile title, “Stranger Things.”
Although global downloads of streaming subscription video-on-demand (SVOD) services were up in the month of June, Netflix only had a 28% share of those downloads. The streaming giant’s downloads decreased by 5% year-over-year and saw a 2% decrease from May 2022.
While Netflix may be stumbling, Paramount+ downloads hit record highs in Q2 with Disney+ and Prime Video also showing an increase for the month of June. Paramount+ has experienced sequential improvements since its 2021 rebrand from CBS All Access. Downloads were up 19% in June on a year-over-year basis and up 11% month-over-month. International statistics showed a 37% increase from May to June, with a slight 9% decrease domestically.
The new data comes after a study conducted by the research firm Antenna indicated that Netflix subscribers are the most likely to quit after their first month using the service.
Netflix reported a loss of 200,000 subscribers in Q1 of this year, driving down the company’s once sterling stock price. With 2 million lost subscribers projected for Q2, Netflix has announced a 2022 launch date for its first-ever ad-supported tier, as well as plans to combat password sharing as well.
Jayant notes that the negative app download trends “are broadly consistent with management’s commentary about gross adds stabilizing at a lower level than historically and net adds being negatively impacted by higher churn.”
While the new changes have yet to come into effect, Jayant notes that Netflix monthly active users were down 5% from last year but saw no change from the month of May.
The pessimism around the business has been reflected in the Netflix stock price, which has fallen from $691 in November to $182 today.
Netflix currently offers three service plans — a “Basic” ($9.99) plan accessible on one device, a “Standard” ($15.49) plan accessible on 2 devices, and a “Premium” ($19.99) plan available on 4 devices up to 4k.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.