There has been a lot of news coming out of Netflix’s latest profit call, as the broadcast giant shares that it lost less than a million subscribers worldwide in the second quarter of 2021, but more than a million in Canada and in the United States.
This is the second consecutive quarter of Netflix subscriber losses after the company lost a total of 200,000 viewers in the first quarter. That said, the Stranger Things house is expected to drop more than two million during the second quarter, so just losing a million is considered a win. As a result, shares of Netflix have risen after the bell on Tuesday as the company retains more subscribers than expected.
Netflix seems to be losing more ground in its American stronghold, where it faces competition from HBO, Disney and other platforms. Last quarter the company only lost 600,000 users in the same geographic area.
Overall, Netflix’s revenue has grown nine percent to $ 7.9 billion (approximately $ 10.1 billion CAD) and it plans to add back about a million subscribers. It sounds like a difficult sale, but as the broadcast giant begins to test the sharing of paid passwords and an ad-compatible level, it could get some people back. Worldwide, the streaming giant has 220.7 million subscribers.
To help prepare for the loss of subscribers, Netflix has spent the past few months laying off 450 employees and preparing its level of advertising support to go live in 2023 in markets where advertising spending is higher, according to a report of the New York Times.
Via: New York Times, The Verge