Netflix Lost 970,000 Subscribers in Q2 2022, According to Latest Earnings Reports
Netflix’s latest earnings report has come out and it is revealed that the streamer is facing another loss in subscribers. Throughout Q2 2022, Netflix reportedly lost 970,000 worldwide subscribers. However, this figure is actually less than what the company anticipated.
This is the second quarter in a row that Netflix is reporting a loss in subscribers. Following its first quarter of the year, Netflix reported a loss of 200,000 worldwide subscribers. It was also at this time that the company announced its plans to develop an ad-supported tier with a cheaper entry price. Shares took a hit as Netflix began to anticipate a 2.5 million subscriber loss for the second quarter of 2022.
Turns out, Q2 2022 didn’t bring the expected result Netflix had. The three-month span ending in June did see a dip in subscribers but only 970,000 in comparison to 2.5 million. According to CNBC, Netflix believes that it will be able to add 1 million new subscribers during Q3 2022, in an attempt to remedy this year’s total loss. Analysts believe that Netflix would aim for a subscriber growth of 1.8 million. Currently, Netflix has 220.67 million subscribers worldwide.
It’s also worth noting that Netflix’s reported revenue has grown nine percent. According to the latest earnings report, Netflix’s revenue grew to $7.9 billion USD (roughly $10.1 billion CAD). Shares are also being traded at $3.20 USD (roughly $4.12 CAD).
To help mitigate subscriber loss, Netflix is planning to introduce a cheaper, ad-supported tier to draw new subscribers. Similar to other streaming services, offered by HBO and Disney in the U.S. It’s said Netflix is looking to partner with Microsoft to power its ad-supported tier.
Currently, Netflix offers three plans in Canada. A Basic plan is available for $9.99/month, offering 480p streaming to one device. Standard is available for $16.49/month and enables 1080p streaming on up to two devices. Premium, which is available for $20.99/month enables 4K HDR streaming on up to four devices.