Netflix’s subscriber base continues to decline, losing nearly 1 million members last quarter
Today, the company says it has 220.67 million paying members worldwide.
Netflix expects to add a million subscribers next quarter.
Netflix has revealed that the company is still in talks with major studios to push content to that special level with ads.
Netflix’s subscriber base continues to decline. The company released its second quarter (Q2 2022) earnings report on Tuesday and also held an earnings call in which it highlighted losing subscribers in two consecutive quarters – the first time in history. It lost nearly 970,000 paying subscribers in the June quarter, better than the two million expected to disappear. In the March quarter (Q1 2022), the streaming giant lost nearly 200,000 paid subscribers.
Today, the company says it has 220.67 million paying members worldwide. The company also hopes to add one million subscribers in the next quarter thanks to the launch of its most popular English-language movie – Stranger Things Season 4 Volumes 1 and 2. The company is also adding new episodes to other popular movies such as Better Call Saul and Peaky Blinders, which it managed to expand its subscriber base this quarter and ends in September. Business leaders remained optimistic about this quarter (Q3 2022). Interestingly, the company still saw revenue growth (9 percent year-over-year growth) in Q2 2022, despite a decline in its subscriber base. Sales are expected to decline over the next four years.
In its quarterly report, Netflix says: “The main reason for the discrepancy in our earnings forecast is the appreciation of the US dollar (USD) against most other currencies since our April earnings report. In its earnings video, Netflix revealed that the company is still in talks with major studios to push content to that special level with ads. Ted Sarandos, CEO of Netflix, said: “When we launch the [ad-supported subscription] product today, ad-level members will have a great experience. We will remove some of the extra content, certainly not all of it, but we will do it. Don’t think it’s a material restriction of business.”
In our previous report, we expected this improvement because Netflix is still in talks with Warner Bros., Universal, and Sony Pictures Television to introduce an ad-supported subscription model. The ad-supported subscription was developed by Microsoft.