Netflix loses almost a million subscribers

Netflix lost nearly a million subscribers in the spring amid stiffer competition and rising inflation that squeezed household budgets.

The drop of 970,000 accounts from April through June, announced Tuesday as part of Netflix’s second-quarter earnings report, is by far the largest quarterly subscriber drop in the company’s 25-year history.

However, things could have been far worse considering that Netflix management released an April guidance expecting a loss of two million subscribers in the second quarter.

Netflix was likely spared deeper losses by the continued popularity of Stranger Things, its sci-fi/horror series that debuted in 2016.

It’s tough losing a million subscribers and calling it a successManaging Director Reed Hastings

After the show’s fourth season was released in late May, Netflix said 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.
The less severe loss of subscribers, combined with an outlook calling for a return to growth over the July-September period, helped push battered Netflix stock up 7% in extended trading after the numbers were released.

Netflix co-chief executive Reed Hastings didn’t try to whitewash things during a conference call on Tuesday about the results.

“It’s tough losing a million subscribers and calling it a success,” he said.

The company’s April-June regression follows a loss of 200,000 subscribers in the first three months of the year, marking the first time Netflix’s subscriber base has shrunk in consecutive quarters since transitioning from offering DVD-per- Mail rental for video streaming started 15 years ago.

Losing nearly 1.2 million subscribers in the first half of this year also provides a first contrast to the pandemic-driven growth Netflix experienced in the first half of 2020, when its streaming service added nearly 26 million subscribers.

Despite the downturn, Netflix still made $1.4 billion (£1.1 billion), or $3.20 (£2.7) per share, in the quarter, up 6% from the year-ago period. Revenue rose 9% to nearly $8 billion (£6.7 billion) from the same time last year.

video of the day Netflix loses almost a million subscribers

Fry Electronics Team

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