NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Netflix's streak of bad luck continues; loses 1 million subscribers
    Netflix's streak of bad luck continues; loses 1 million subscribers
    1/8
    Business 3 min read

    Netflix's streak of bad luck continues; loses 1 million subscribers

    By Athik Saleh
    Jul 20, 2022
    04:34 pm
    Netflix's streak of bad luck continues; loses 1 million subscribers
    Netflix had projected a loss of 2 million customers in the second quarter

    Netflix has been in a bit of a pickle lately. The streaming giant's financial report has revealed that it lost nearly one million subscribers in the last quarter. This hit comes after the company reported losing users for the first time in a decade in Q1. The only saving grace - losing almost one million is way better than the projected two million figure.

    2/8

    Why does this story matter?

    All is not well at Netflix's headquarters in Los Gatos, California. The streaming giant which once ruled the space with an iron fist is now trying hard to get a grip. Two consecutive quarters with a loss of subscribers - that is not something even the worst critics of Netflix would have predicted. It still reigns supreme, but how long will it last?

    3/8

    Netflix's total subscriber count is just shy of 221 million

    In its Q2 earnings report, Netflix reported a loss of 0.97 million customers, putting its total subscriber count at 220.67 million. US and Canada topped the cancellation chart with over one million cancellations between March-end and June-end. In the Asia Pacific region, however, the company gained nearly 1.1 million members. The company's revenue grew from $7.3 billion in 2021 to $7.97 billion this quarter.

    4/8

    'Weak foreign exchange stifled revenue growth'

    Netflix is used to posting double-digit revenue growth. About the 9% year-over-year growth in the Q2, the earnings report said, "The second quarter was better-than-expected on membership growth, and foreign exchange was worse-than-expected (stronger US dollar), resulting in 9% revenue growth (13% constant currency)."

    5/8

    Ad-supported tier will not have all the current content

    To counteract the continuous dip in customers, Netflix is all set to launch a new ad-supported tier in early 2023. The ad-supported tier is bound to be cheaper than the existing subscription plans. However, there is a catch. The upcoming offering will not have all the content that is currently available. The effect of this information can only be gauged later.

    6/8

    Netflix is testing additional "home" feature to stop password-sharing

    Netflix has always blamed password-sharing as one of the major causes of subscriber loss. The company is now testing a new way to track the same in Latin America. The new method will prompt a user to pay for an additional "home" if they use their Netflix account on a TV or TV-connected device outside the primary household for over two weeks.

    7/8

    Competitors are growing at a rapid pace

    Additionally, there was a time when Netflix enjoyed its 'king of streaming' throne with no challenge. The company's over 220 million subscriber count is still way ahead of the next competitor. However, others are growing. In Q2, its main rival Disney+ gained eight million new subscribers. Paramount Plus and HBO/HBO Max added 40 million and 13 million users during the same period.

    8/8

    Netflix expects to add 1 million customers in Q3

    In its earnings report though, Netflix is optimistic about the next quarter. It forecast an addition of one million customers. Further, the company expects a 12% year-over-year (YoY) growth in revenue.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Netflix
    HBO
    Disney+

    Netflix

    Digital minimalism 101: Get a focused life with digital declutter Technology
    'Love is Blind' contestant sues Netflix for 'inhuman working conditions' Hollywood
    'The Gray Man': All about Ryan Gosling-Chris Evans-Dhanush starrer Dhanush
    Weekend watchlist: New OTT titles to enjoy across Hollywood, Bollywood ZEE5

    HBO

    Watch select HBO Max Originals on Amazon Prime in India John Cena
    Confirmed! BLACKPINK's Jennie making acting debut in HBO's 'The Idol' K-Pop
    'Succession' to 'Squid Game': 5 Highlights from Emmy nominations 2022 Emmy Awards
    World War II veteran Bradford Freeman passes away at 97 World War 2

    Disney+

    Tom Hiddleston opens up on Loki's 'fluid' sexuality Loki
    These 5 OTT shows are coming with new seasons Amazon Prime Video
    Disney+ bags Elton John's documentary 'Goodbye Yellow Brick Road' The Walt Disney Company
    Netflix is exploring livestreaming options for the first time Netflix
    Next News Article

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023