Planned cancellation rates among Netflix subscribers worldwide 2023, by country

Netflix is currently facing the challenge of retaining subscribers worldwide, with data from the second quarter of 2023 revealing that Germany and Spain experienced the highest churn rates at nine percent. Australia followed closely, while France had a relatively low cancellation rate at just two percent.

Impact of the new business model

The subscription video-on-demand (SVOD) market has experienced a significant increase in the past decade, driven by major players, like Netflix, Amazon Prime Video, and Disney+. However, the anticipated slowdown in revenue growth, coupled with the increasing popularity of ad-supported content and subscription cycling, underscores the evolving dynamics of consumer preferences within the streaming industry. Netflix's introduction of a basic plan served with commercials in late 2022 had a significant impact on subscriber behavior in the U.S., with the ad-supported tier accounting for 30 percent of sign-ups in September 2023. 

Growth despite challenges 

Netflix's global position remains strong. With over 269 million paid subscribers worldwide, the company's revenue continues to grow, reaching nearly 9.4 billion U.S. dollars in the first quarter of 2024. While challenges persist, such as the increasing popularity of other streaming services and the impact of price increases on subscriber numbers, Netflix's plan to generate revenue from sources, like licensing, ads, and merchandise, positions the company for future profitability.