Updated · Nov 16, 2022
Netflix Loses Close to Million Subscribers
Updated · Jul 20, 2022
As a part of its second-quarter earnings report, Netflix announced on Tuesday that the company has lost about 970,000 subscribers.
Despite losing nearly a million subscribers between April and July, things aren’t as bad as the streaming giant had initially feared. Earlier this year, Netflix management predicted a two million loss during the second quarter.
When asked what may have prevented subscriptions from sliding further, the company’s CEO, Reed Hastings, said "If there was a single thing, we might say 'Stranger Things.'"
The new season of the hit series has experienced phenomenal success, crossing over one billion hours watched earlier this month.
The subscriber losses from the previous quarter are still the biggest in the company’s history. One of the main reasons for this is fierce competition from other streaming services such as Apple TV, HBO Max, Disney Plus, and Amazon Prime.
Another reason may be soaring inflation that is squeezing household budgets around the world.
Netflix lost subscribers for the first time at the start of 2022, announcing a contraction of 200,000 subscribers. The company’s stock price has plunged by nearly 70% so far this year, wiping close to $180 billion in shareholder wealth.
Netflix will respond by launching a cheaper subscription with commercial interruptions. Microsoft will operate as its global advertising technology and sales partner for the new plan.
The management expects a bounceback, predicting that the service will add about one million subscribers in the July-September period.
Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.
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