Will Neftlix’s lower subscription fee bring back subscribers?

Netflix shares fell heavily after their latest earnings report showed an unexpected loss of 200,000 subscribers verses expectations of a gain of over 2 million. On top of this the company projects that Q2 will see a further fall of 2 million subscribers. This has some analysts wondering whether this fall in subscription numbers is further signs of slowing growth.

Paid for subscription services like Netflix will be an unnecessary expenditure that pressed consumers will quickly drop if the cost of living demands it. However, Netflix are trying to counter this with a cheaper, ad supported tier, as well as finding ways to charge for account sharing.

So, will this dip in prices find buyers? Between April 27 and July 14 Netflix has risen a total of 13 times over the last 19 years. The average rise in price has been over 10%. The largest fall was more than 22% in 2006 The largest gain was greater than +40% in 2014.

So, will Netflix shake off the recent falls over the subscription disappointment and edge higher? Or will consumers keep dropping their Netflix subscriptions as the cost of living rises?