August 7, 2022

Netflix Lost Nearly 1 Million Subscribers Last Quarter

After announcing that it will lose more members in the second quarter, Netflix has confirmed its forecast—though it wasn’t as awful as expected. In the second quarter, the streaming service reported losing 970,000 customers.

Though it’s higher than the 200,000-member drop from Q1, it’s not as bad as the 2 million subscribers Netflix was willing to give up.

The business credited better-than-expected subscriber growth, particularly in the Asia Pacific, with a somewhat better result. Despite a declining client base and poor exchange rates for the US dollar, the corporation made a net profit of $1.44 billion.

According to Netflix, currency exchange rates are a significant challenge when approximately 60% of revenue is generated outside the United States.

The media company expects sluggish but steady recovery in the third quarter. It now expects to gain a net 1 million subscribers. This is a notable improvement over the past six months but is still far from the 4.4 million Netflix subscribers added in 2013.

Stranger Things 4 is off to a fantastic start, with over 1.3 billion hours of viewing, making it Netflix’s most-watched English TV season to date.

They are recovering after a loss is a normal process for Netflix. Ad-supported tiers at lower prices are still on the company’s wish list for early 2023, when they are launched in a “handful of markets” with high ad expenditure.

Moreover, the business is experimenting with ideas that include charging for additional residences to combat account sharing. In 2023, the finalized sharing system could be implemented.

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