$Netflix(NFLX)$Waning consumer satisfaction

Increased competition in the streaming industry has pushed consumers to compare Netflix to better-valued services -- to the detrimental of the company. Consumer satisfaction and trust has sagged regarding Netflix's value and content quality. A crackdown on password sharing could push its members further into the hands of the competition.

In terms of consumer value, Netflix's offering is at the lower end of the spectrum. Its cheapest plan is $9.99 for one stream at less than 720p resolution, with its next tier being $15.99 for two streams and 1080p resolution. Consumers interested in 4K video quality and up to four simultaneous streams must pay $19.99.

Meanwhile, its biggest competitors, Disney's Disney+ and Warner Bros. Discovery's HBO Max, allow between three to four streams and have 4K resolution as standard for all members. Disney+ costs $7.99/month, and HBO Max is $14.99/month for ad-free video. Netflix has plans to rectify this with its upcoming ad-supported tier, but it will take time for the public to see the service in a new light.

Furthermore, consumers have long complained about the quality and consistency of Netflix content. The company's hits, such as Stranger Things and Squid Game, have significantly paid off, but that doesn't mean consumers can trust its new content to live up to the same standard. For instance, Netflix most recently released a series adaptation of the popular game Resident Evil. The show had the potential to pull in subscribers from a massive and well-established fanbase, but the series is now one of Netflix's worst-rated shows ever. Additionally, the company's reputation for canceling well-liked and unfinished series has only worsened matters.

Alternatively, HBO Max and Apple's Apple TV+ have prioritized quality above all else. HBO Max alone walked away with 108 Emmy nominations on July 12, with 140 going to HBO as a whole -- an increase of 10 from 2021. Apple TV+ walked away with 52 nominations, a 40% increase from the previous year. Netflix did well to earn 105 nominations, but this figure decreased from 129 in 2021.