Netflix’s Usage Intent rose 2% from November to December even as it stayed stable for the overall video streaming industry. However, its Usage Intent fell 3% from February through March, eliminating the gains it had made at the end of 2022. The pullback in Usage Intent aligns with the recently reported slowdown in North American subscriber growth in 1Q 2023.

Netflix also announced during its earnings call that it is ending the DVD-by-mail service that started the media company 25 years ago. It’s not clear how many subscribers still used the service, but the Associated Press estimates it was between 1.1 million and 1.3 million customers. The service will wind down in September.

At least some HundredX respondents still used the service. “I am very pleased with our Netflix mail order DVD subscription which we have had for years,” one respondent told HundredX late last year.

Another respondent told HundredX in February, “I like being able to use mail order.”

It’s worth noting both respondents are people over the age of 60. Netflix Usage Intent is highest among subscribers in their 50s followed by subscribers in their 60s. It will be interesting to see how the end of the DVD-mail service impacts this.

New Releases Down, Ease of Use Up

During the past quarter, Netflix customers have felt slightly more negative about a few Netflix attributes, including its value and new releases. Both continued their decline (-1% each) over the past month. While Netflix subscribers do generally like Netflix’s new releases, it appears they weren’t as happy with the new content the streaming giant put out over the past three months. This coincides with Netflix reducing its content spend to $2.5 billion in Q1 2023, down from $3.6 billion in Q1 2022.

At the same time, Netflix subscribers did feel happier about Netflix’s ease of use, navigation, and technical performance. This seems to correspond to updates Netflix made to its iPhone app in January, which provided users with a visual user interface (UI) upgrade and made it easier for users to search for content.

A platform’s ease of use, its price, and its content variety are top reasons a video streaming subscriber likes or dislikes a streaming service.

“Easy to navigate, even for someone not tech savvy,” a HundredX feedback provider said of Netflix in late January.

“We watch Netflix almost every night. I love the ease of finding a show or movie. The recommendations are usually accurate,” another person said in March.

As the video streaming industry evolves, Netflix continues enhancing its services in an attempt to stay ahead of the curve and adapt to new trends and user preferences. Our Usage Intent and sentiment data suggests that to foster growth, Netflix should focus on:

• Making more investments in original programming and diverse content.
• Expanding its lower-cost, ad-supported tier to attract price-sensitive customers.
• Continuing to enhance user experience and navigation to ensure customer satisfaction.

By following these strategies, Netflix will likely continue to drive growth and dominate the streaming market. As the platform evolves, we'll be closely observing how these changes impact Usage Intent and, ultimately, the company's bottom line.

1. For this piece, all metrics presented, including Net Usage Intent (Usage Intent), and Net Positive Percent / Sentiment are presented on a trailing one-month basis unless otherwise noted. 
2. Usage Intent reflects the percentage of customers who plan to use a specific brand during the next 12 months minus the percentage who plan to use less. 
3. HundredX measures sentiment towards a driver of customer satisfaction as Net Positive Percent (NPP), which is the percentage of customers who view a factor as a positive (reason they liked the products, people, or experiences) minus the percentage who see the same factor as a negative.
   

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