Netflix continues to lose more subscribers, but remains optimistic

Netflix continues to lose more subscribers, but remains optimistic

After losing 200,000 subscribers in the first quarter of 2022, Netflix is ​​posting another loss in the second quarter, much larger than the previous one: this time around a million subscriptions were lost. But the service could quickly rebound.

Bad times for Netflix : if the SVOD platform remains one of the most popular on the market, it is still losing more and more paid subscriptions. Obviously, it is not enough to chain the successes with series like Squid Games, Stranger Things, Umbrella Academy or La Casa de Papel to manage to keep the favors of the users.

During the second quarter of this year, Netflix lost 970,000 paid subscribers worldwide. With the 200,000 who fled the platform in the first quarter, this represents almost 1.2 million fewer subscriptions in the first half of the year.

A surprisingly optimistic figure for Netflix

This dead loss of subscribers represents an obvious shortfall for Netflix, which does not give details about the subscription plans most affected by this leak of paid accounts. However, as surprising as it may seem, the SVOD service is rather satisfied with the situation.

In effect, Netflix had previously forecast a loss of 2 million subscriptions. Against this estimate given earlier in the year, the current situation is looking less gloomy than expected. The company explains this by “better than expected subscriber growth in some regions”such as Asia-Pacific.

This means that if subscribers desert in some countries, in others users are there and subscribe more. Over 60% of Netflix’s revenue comes from outside the USwhich tends to cause him some concern because of the exchange rates which are currently particularly unfavorable throughout the world.

Netflix sees the light at the end of the tunnel

The loss of nearly a million subscribers hasn’t stopped Netflix from realizing a net profit of 1.44 billion dollars during the second quarter of the year. From now on, the SVOD platform hopes to recover one million net subscribers in the third quarter of 2022, which would allow it to almost return to its situation at the start of the year. The company seeks balance and stability rather than growth: in 2021, the service had gained 4.4 million subscribers, but this situation now seems a long way off.

Netflix’s salvation could come from its future subscription formula which, in exchange for displaying advertisements, would offer a small price to its customers. A project carried out head-on with Microsoft, and which will probably see the light of day in early 2023. Something, perhaps, to give ideas to the competition…

Ashley Johnson
Ashley Johnson is the lead reporter for Globe Live Media on things related to Astrology, Lifestyle and Music. Being a fitness enthusiast, her background involves growing up in Beverly Hills, where She often interacts with famous Artists and also talks about their ways for a Healthy Lifestyle. She is in fact a profound Yoga student. You can be well assured about the authenticity and quality of Lifestyle, Health, and Music reports published by her.