Technology: Previously, Netflix has loses its subscribers in the first quarter. In the second phase, Netflix announced that it lost nearly one million paid subscribers in the second quarter of this year.
In the reports of second-quarter earnings, the company revealed that it has lost 9, 70,000 subscribers and that is a lot more than the 2, 00,000 member decline from the first quarter. A loss of nearly five times as large as Q1 (first quarter) but still far below its expected loss of 2 million.
The second quarter subscriber loss may not have been bad as expected it could be, but this is still a worrying sign for the company that depends on entirely subscriptions revenues. The main reason for unsubscribing Netflix has been the price hike in the subscription that causes many to cancel their Netflix subscriptions.
Netflix was probably spared from deeper losses by the ongoing popularity of Stranger Things, it’s a science fiction/horror series that debuted in 2016. Following the release of the series’ fourth season in late May, the viewers watched a total of 1.3 billion hours of it over the next four weeks, more than any other English-language series in the service’s history. Though it did benefit from releasing the latest season of the hit show Stranger Things across two monthly subscription periods.
Netflix is focusing on ad platforms to make up for the growth and losses, they further said that it could take up to years to launch the ads on the platforms. Netflix said that it would partner with Microsoft on the ad platform came just one day after Disney struck a similar deal with The Trade Desk.
The senior analyst Ross Benes of Netflix said the loss of subscribers was expected that it could be but it remains a sore point for a company that entirely depends on the subscription revenue from consumers. The marketers surge on the opportunity to advertise alongside Netflix’s expansive catalog and reach hundreds of millions of viewers, but this may not be enough for Netflix to regain its losses.
The loss of Netflix was nearly 1.2 million subscribers during the first half of the year 2022 and also provides a start contrast to the pandemic-driven growth that Netflix enjoyed during the first half of 2020 when it’s streaming service and subscribers increased by nearly 26 million subscribers.
Apart from everything, Netflix still earned $1.4 billion, or $3.20 per share during the quarter, a 6% increase from the same time last year. The Revenue increased 9% from the same time last year to nearly $8 billion.