According to Netflix’s quarterly earnings report, the company has recorded a loss of 970,000 subscribers in the second quarter of this year. Netflix CFO Spencer Neumann says the results are better than expected, as the company had predicted a loss of two million subscribers. The video streaming firm continues to remain optimistic despite its dismal performance, hoping to add 1 million more subscribers in Q3 2022.
Netflix’s Q2 2022 earnings report states that the company has managed to increase its revenue by 9 percent YoY to $7.97 billion in the second quarter of 2022. This has been attributed to a 6 percent YoY rise in streaming paid memberships and a 2 percent YoY increase in Average Revenue per Membership.
When asked about the result turning out better than expectations, Netflix Chief Reed Hastings said, “If there was a single thing, we might say ‘Stranger Things.'” The Netflix original has been a huge success since its launch, and continues to grab eyeballs.
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However, the streaming platform is now challenged by competitors such as HBO Max, Amazon Prime, Apple TV, and Disney+. Netflix is looking to regain its crown by introducing cheaper ad-supported tiers. Just last week, the company announced that it is teaming up with Microsoft to help with its advertising needs.
Furthermore, it is planning to put the brakes on password sharing. Netflix has already been testing the feature in countries such as Chile, Costa Rica, and Peru. The firm noted in its shareholder report that it was “encouraged by our early learnings and ability to convert consumers to paid sharing in Latin America”. The company added, “Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering.”
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