Investors were clearly pleased with the results, as Netflix shares rose 8 percent after trading hours.
Netflix said it would add a million more subscribers in the third quarter, which was slightly softer than Wall Street expectations.
Netflix lost nearly 1 million subscribers during the spring amid tougher competition and rising inflation that is squeezing family budgets, increasing the urgency of the video streaming service’s effort to launch a cheaper option with interruptions commercial. (Getty)
The company’s April-June decline follows a loss of 200,000 subscribers during the first three months of the year, the first time Netflix’s total subscribers have shrunk in consecutive quarters since start your transition from offering DVD rental by mail to video streaming in 15 years. does.
The loss of nearly 1.2 million subscribers during the first half of this year also offers a contrasting start to the pandemic-driven growth that Netflix enjoyed during the first half of 2020, when its streaming service picked up nearly 26 million subscribers.
Despite the fall, Netflix still earned $ 2 billion, or $ 4.60 per share during the quarter, up six percent from the same time last year.
Revenue rose nine percent from the same time last year to nearly $ 11.6 billion.
While Netflix’s spring subscriber losses weren’t as bad as investors and management feared, the recession served as an unpleasant reminder of the challenges the Los Gatos, California-based company now faces. of a decade of unbridled growth.
Netflix’s share price has fallen nearly 70 percent so far this year, removing about $ 260 billion in shareholder wealth.
The ‘Stranger Things’ show has been one of Netflix’s biggest hits in recent years. (Netflix)
Since then, other video streaming services have made great strides in attracting viewers, with Apple earning praise for its award-winning programming of TV series and movies, while the popular line of family titles of Disney continues to gain strength.
At the same time, Netflix has raised its prices to help pay for its own original programming, just as higher inflation rates in 40 years have led consumers to curb spending on discretionary items such as entertainment. .
These factors help explain Netflix’s April announcement that it will crack down on the unbridled exchange of subscriber passwords and take another step it previously despised by offering a less expensive level of its service that will include business outages.
Steven Avery was the subject of the 2015 Netflix documentary ‘Making a Murderer’, which helped increase market penetration of the streaming platform. (AAP)
Without providing further details, Netflix said that both the plan with advertising and the crackdown on password sharing will begin early next year.
The company did not say how much the streaming option will cost with commercials.
Netflix took it one step further by creating the ad = admise option last week when it announced it would partner with Microsoft to deliver the ads.
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