Various external factors are challenging the future of Netflix. For example, Netflix’s growth has slowed due to increased competition, such as Amazon Prime, Hulu, and Disney+. Because customers have been choosing to subscribe to other streaming services, it has negatively impacted the business, resulting in reduced revenue. Netflix has come a long way since it first originated, beginning as a service of shipping DVDs to houses and later introducing virtual streaming.
Today, Netflix is a leader in its industry, but its old business is dying off. The company could have adapted by figuring out how to reinvent themselves with a unique offering to stay successful. Netflix also gets hurt from the short-term subscribers: people who only want to watch one show and then immediately cancel their membership after finishing it.
The costs of Netflix purchasing rights is another aspect to consider regarding its possible extinction: the movie and show rights are getting more expensive because the producers are aware of their importance and desire. Increased competition, not changing enough to match society, short-term subscribers, and high rights costs are all reasons that Netflix may cease to exist in the future.
The loss in the first quarter of 2022 caused an awful reputation for Netflix, and the report suggested that about 60% of new subscribers canceled their subscriptions in the first quarter of 2022.
