The company’s latest report showed that Netflix lost 970,000 subscribers in the last quarter. The company had previously incurred a loss of two million customers.
Netflix’s share jumped after the numbers were released, and at the time of writing, it’s up 6.69% in the Wall Street aftermarket.
The number of new customers has always been among the most important units of measurement Netflix considers in the market, and the spring quarter is usually a weaker period for the streaming giant.
At the previous crossroads, in its first quarter report, Netflix had to report its first subscriber loss in more than a decade, and the stock fell.
The company said at the time that it expected to lose another 2 million subscribers this quarter.
But the drop was only half its size. It lost 970,000 subscribers in the second quarter.
In the second quarter of last year, the number of subscribers to the service increased by 1.54 million.
Anticipate customer growth
The financial figures for the second quarter were as follows:
- Revenue for the quarter was $7.97 billion, up from $7.34 billion in the same period last year.
- Earnings per share ended at $3.20, compared to $2.97 per share last year.
Ahead of today’s numbers, revenue was also expected to fall at $8.04 billion, according to Bloomberg estimates. At the same time, adjusted earnings per share were expected to be $2.97.
Going forward, in the third quarter, the company now expects to attract 1 million new subscribers. By comparison, the increase was 4.4 million in the same period a year earlier — and the market expected a guidance of 1.83 million, according to Bloomberg.
Stranger Things success
Netflix is highlighting the TV series “Stranger Things” as one of the driving forces behind the development.
According to the report, the series’ fourth season has generated 1.3 billion hours of playback on the service. This makes the season the most popular English-language Netflix series ever, according to the company.
The season also made previous episodes popular again, and the series’ play count increased more than fivefold from May to June, according to the company.
The numbers are dropping as the stock jump brings with them other power giants in trading on Wall Street.
Among Netflix’s competitors, shares of Disney rose 1.67%, and shares of Warner Bros. Discovery is up 1.68 percent and Paramount Global is up 1.3 percent.
Meanwhile, Roku’s streaming service is up 2.7 percent, while Spotify is up 2.1 percent.
Announces new sources of income
The Energy Service says revenue growth is a priority. To achieve this, the company will continue to improve its pricing models and introduce a new type of subscription called the “ad-supported tier”.
The subscription will be cheaper than today’s subscriptions, but there will be more ads. The company has ambitions to roll out the subscription in early 2023. It was announced last week that Microsoft will be their partner in developing the new subscription type. The company expects this to increase subscriptions and ad revenue.
Netflix also aims to charge you for account sharing. The company states in the report that the process is still at an early stage, but it expects to roll out the payment solution in 2023. As of today, the Netflix account is shared by more than 100 million households.
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