Netflix Customers Drop Nearly a Million in Q2/2022, Plans to Increase Revenue and Subscribers

Netflix releases second-quarter results Lost 970,000 customers, below 2 million expectations, prompting 12% investors to jump right in.

This is partly a result of the ‘Stranger Things’ season 4 series, which has gained immense popularity. This resulted in a lower-than-expected drop in customers, with over 1.3 billion hours of viewership in the first four weeks.

Net profit was $1.4 billion, up from $1.3 billion in the year-ago quarter. Total revenue rose about 8.6% year-on-year to $7.9 billion.

The better-than-expected results led Bloomberg to report the stock rose as much as 12% in long-term trading. It rose as high as $225 per share before closing at $201.63 in New York on Tuesday (July 19). Overall, the stock is down 67 percent this year.

Revenue and Membership Acceleration Plan

Netflix, which currently has 220.67 million subscribers, said it expects to add about 1 million new subscribers in Q3 and is preparing plans to accelerate revenue and future subscriber growth.

Netflix has partnered with Microsoft to oversee advertising sales to the company. It is expected that Netflix plans to launch low-cost packages with limited ads or content. to market

In addition, the company has tested new approaches. For example, if the same account is used in different homes for more than two weeks, Netflix will send a notification to the primary account asking them to pay. Additional service around 110 baht

Tests and plans No conclusion yet, but Netflix is ​​expected to speed up the system and launch early next year.

source

Bloomberg

Forbes