Netflix’s lowest ever annual UK subscriber count in 10 years was recorded in 2021 according to figures.
Although the streaming service had hit programs last year (Squid Game, Sex Education, and Sex Education), it only managed to attract 800,000 subscribers.
The announcement comes as a result of four-fifths, or more than half of those aged between 18 and 34 in the UK having signed up to the service directly through their family members.
The streaming giant will now concentrate on those over 55 who are less subscribed and have increased their internet usage in the last two years.
Richard Broughton is a director at Ampere Analysis, which conducts market research. He told The Guardian that it was peak Netflix because we will never see the same level of subscribers as we saw over the last few years.
Netflix’s growth will be slower, however.
The streaming company brought in 18.4 Million new users last year on a global scale, which brings its total to around 222,000,000.
Next month’s annual numbers will be revealed. They are approximately half of those of 2020 which witnessed the first wave Covid lockdowns. This year saw 37 million signups, making it its most successful year yet.
Although the streaming service had hit shows like Squid Game, and Sex Education, it only attracted 800,000 UK members.
The streaming company brought in 18.4 Million new users last year on a global scale, which brings its total to around 222,000,000.
The service was made possible by the fact that four fifths of those aged between 18 and 34 have either become subscribers to the UK or are able to access it via their family. This includes 70% of those 35-44 year-olds.
Netflix experienced a surge in popularity during the pandemic. Millions were stuck inside, with very little entertainment. However, it now faces saturation in countries like the UK. (Pictured Scene From Maid).
Netflix also faces increasing competition from Disney+ and Amazon Prime Video.
The latter was launched at the start of the pandemic and was able to draw in more UK subscribers in its first year than any other streaming platform before it, helped by exclusive content such as the $100million (£74million) Star Wars spin-off series The Mandalorian.
Amazon Prime is also a better option than Netflix for new UK subscribers, partly because it has expanded to live sport, including Premier League football.
Netflix witnessed its growth increase during the pandemic when many people were trapped indoors and had no other entertainment.
It is facing saturation in countries like the UK and the US where new sign-ups have stalled in last year’s economic cycle.
Broguhton said that Netflix had tapped the early adopters and was now working to convert more people to streaming. He also stated, “Netflix is trying to convert viewers who are less willing to pay to Netflix and find Netflix’s content less appealing.”
Ampere’s research found that Netflix is used by around four fifths of the 18-34 age group in the UK as well as the US.
The BBC’s 2020 drama The Salisbury Poisonings – about the Russian Novichok attack in Wiltshire – was one of the most-watched titles over Christmas for UK viewers, according to Netflix data
It falls to 70% among the 35-44 year-olds, and to 62% among those 45-54 years old.
People aged between 55 and 64 have the greatest opportunity, but only half of those who connect to the internet are Netflix subscribers.
This means that the streaming company must focus more on content for older audiences.
Mr Broughton stated that the one thing keeping Netflix from reaching more households is its inability to convert them.
These are the older customers, who are closer to UK television stations. These people like local productions.
“Netflix will be tapping into this market with new productions aimed at these customers.”
The so-called “silver streamers”, those over 75, is also an attractive demographic. They have seen the most rapid growth in internet usage, since the summer 2019!
TalkTalk research shows that over 75s experienced a 72% increase in internet activity following strict Covid guidelines. This was according to TalkTalk.
Internet usage increased by 66% in the 65-74 age group.
Jonathan Kini, TalkTalk Business’ managing director, said to the Guardian, “Silver streamers” is now a major thing.
“Everyone wants more options and research shows that there is a wide range of Netflix programming, including Bridgerton, The Crown, and Squid Game. Netflix streaming shows now account for half of peak traffic to our network.
Netflix expects to invest $17bn worldwide this year to continue attracting new subscribers and to retain its current customers.
It means prices could rise again, following the £1 increase in March last year to £9.99 per month.
The company, however, is unlikely to lose its market leadership position anytime soon.
Brouhton said that the situation Netflix is in now more a sign of historical success at achieving an impressive scale than it is a fundamental problem facing UK businesses.
The streaming giant is challenging Netflix’s premium original series.
The BBC’s 2020 drama The Salisbury Poisonings – about the Russian Novichok attack in Wiltshire – was one of the most-watched titles over Christmas for UK viewers, according to Netflix data.
It was in fourth place in the week to December 26 – behind Netflix shows The Witcher and Emily In Paris.
Another figure shows that ITV’s Downton Abbey, a long-running series, has become a huge Netflix hit.
Declan Lawn co-wrote The Salisbury Poisonings. He welcomed Netflix’s’second existence’.
Since November, the platform began to publish data on its most-watched TV programs and movies weekly. It also published historical data from June earlier in the year.
It was revealed that eight of the top ten shows have included the four first series from Downton Abbey since June.
The Ackley Bridge third series, originally broadcast in 2019, was also shown earlier this year. The Serpent previously aired on BBC.
The Serpent was a collaboration between Netflix and the BBC. It made it to the top for just two weeks.
Others show that ITV’s Downton Abbey is a popular Netflix series this year.
Given the number of opportunities viewers have to view these UK programs either live on television or via the broadcaster’s online streaming services, many will be shocked at how long the list is.
This suggests that Netflix is now the main method for accessing television shows. It also means that many viewers are finding shows they have not had to watch in years or months elsewhere.
Some Downton Abbey episodes are older than ten years. ITV aired it in peak time last year. BritBox offers access to the series via subscription.
Both the Serpent and Ackley Bridge are available without subscription through BBC iPlayer or All4.