Netflix recorded its lowest annual number of new UK subscribers in a decade last year, attracting just 800,000 sign-ups despite hit shows like Squid Game and a new season of Sex Education, according to web analysts.
The streaming giant's growth has slowed as the market reaches saturation: around four-fifths of 18- to 34-year-olds in the UK already have access to the service, either as subscribers or through family members, as do 70 per cent of 35- to 44-year-olds.
Globally, Netflix is estimated to have added 18.4 million new subscribers in 2021, bringing its total to 222 million. This is half the 37 million added in 2020, when pandemic lockdowns drove a surge in sign-ups.
Analysts suggest Netflix will now target older demographics, particularly the over-55s, who have seen increased internet usage during the pandemic. Only 50 per cent of internet-connected 55- to 64-year-olds are Netflix subscribers, presenting a significant growth opportunity.
Richard Broughton, a director at Ampere Analysis, said: 'It is peak Netflix, in the sense we are never likely to see the scale of subscriber additions we have seen over the past few years.' He noted that older consumers prefer content more akin to traditional UK broadcast channels, such as local productions.
Netflix also faces growing competition from Amazon Prime Video and Disney+, the latter attracting more UK subscribers in its first year than any other streaming platform, helped by exclusive content like The Mandalorian.
