When Netflix released its financial statistics for the second quarter, it said it had lost 970,000 subscribers during that time. Netflix, however, had previously announced that they anticipated losing 2,000,000 subscribers in the second quarter of 2022; as a result, they outperformed their prediction by more than 1,000,000 customers. In after-hours trading, Netflix’s stock rose by almost 8%, according to NBC.
On the Losing End
Amid growing competition from rival streaming services like Disney+, HBO Max, and Paramount+, Netflix lost roughly 200,000 subscribers in the first quarter of 2022, their first net loss of consumers in a quarter in more than a decade.
A Silver Lining
Undoubtedly, the long-awaited comeback of one of Netflix’s most well-known shows, Stranger Things, helped the firm throughout the quarter. Almost three years had passed since the last new episode, and the fourth season finally began in May. Additionally, Netflix split the season into two parts, with the second episode premiering on July 1. This certainly helped retain subscribers who joined the service solely to watch Stranger Things for an additional few months.
According to Netflix, it intends to increase revenue in the future by introducing its first advertising and giving users the option of subscribing for a lower monthly fee in exchange for their willingness to watch its episodes and movies with commercial interruptions. Additionally, they’ve stated intentions to combat the widespread practice of subscribers sharing passwords.