Netflix lost 970,000 subscribers in the second quarter of 2022, a period in which it obtained a net profit of 1,441 million dollars (about 1,400 million euros), revealed this Tuesday that the service of transmission.
The data from the company’s financial report is better than the March forecasts, which anticipated the loss of up to two million subscribers after losing, for the first time in more than a decade, 200,000 accounts worldwide since the beginning of the year.
During the three months in which its shares fell and it laid off more than 300 workers, Netflix managed to contain, even so, the drop in subscribers increased by the irruption of competitors such as Disney and Apple in the market. transmission.
The disaster was such that its results were eagerly awaited in the entertainment industry, but after the publication of the report its shares rose more than 10% on the New York Stock Exchange.
In addition, the company based in Los Gatos (California) raised optimism by predicting that for the next quarter it will recover the lost users.
“Our challenge and opportunity is to accelerate our revenue by adding new customers while continuing to improve our product, content and marketingas we have for the last 25 years,” he said in a letter to investors.
However, the data reflects a stagnation in the business model.
Although his predictions say that he will recover the million lost users thanks to the growth of the next semesters, these are far from the four million that he added in the same period of 2021, he admitted.
If the prediction is true, Netflix would face the end of the year with exactly the same number of active accounts as at the beginning of 2022.
On the other hand, his total turnover increased by 8.6%value affected by the new interest rates and by the variation in the value of the dollar, since unaware of this situation, the company places the increase at 13%.
The company’s founders, Reed Hastings and Ted Sarandos, who lamented “not seeing their slowdown sooner”, are now vowing to “adjust their cost structure” to match their “current growth rate”.
In addition to laying off another 300 employees, the company has already signed a contract with Microsoft to introduce advertising on its service, something that will start happening in early 2023.
Netflix partners with Microsoft to create an ad-supported subscription plan
Regarding the other measure, that of charging extra for sharing an account between different families, Netflix has not advanced its plans beyond the pilot program in Chile, Costa Rica and Peru.
By territories, the Asia and Pacific region is the one that most enchants the giant of transmissionthat already equals Latin America in business volume, add more than a million customers.
However, its two main markets, Europe and North America, concentrate the losses of subscribers, especially in the United States and Canada.
Despite the stalemate, Netflix has straightened out its industry lead and boasts of its ability to influence global popular culture with shows like “Stranger Things,” which topped mentions on social media.
With 220 million customers, Netflix is the platform for transmission leader, although it is difficult to compare.
Amazon, for example, only acknowledges that 200 million customers play videos on its e-commerce platform. And Disney has 205 million subscribers across its various platforms: Disney+, Hulu, Star and ESPN+. Apple already brings together more than 40 users on Apple TV +.
Source: Observadora
