New Report Says Netflix Customers Are Cancelling Membership Due To Shrinking Library

Are Netflix, Inc. NFLX's U.S. consumers scrambling to cancel their membership because of the recent $1 hike in the monthly cost? While this may be the case for many users, Exstreamist has a different theory.

Exstreamist, a popular source that closely follows the major online streaming video providers, suggested that Netflix's subscriber slowdown has "little to do" with the $1 a month price hike. Instead, users are fleeing the platform because of the drastically shrinking content library.

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Exstreamist previously noted that Netflix's content library has fallen 40 percent over the past four years. Meanwhile, Netflix's $1 a month price hike served as a "reminder" for users to "check in on just how much utility the service was offering."

"Several years ago it was nearly impossible to pick something to watch on Netflix because the options seemed endless," Exstreamist said. "Now it seems like there just isn't that much to choose from."

Netflix users rate the top 10 percent of Netflix's content as being "unarguably fantastic." The problem is the other 90 percent where there is a "lot of junk at the bottom" and "even more mediocrity in the middle."

Meanwhile, Exstreamist suggested that Netflix's decision to commit $90 million towards a Will Smith cop thriller film isn't the "right strategy" for the company. Instead, the company should focus on growing its library of third-party content.