Disasters have been avoided on Netflix.
Streaming giants said in a revenue report on Tuesday that they lost nearly a million subscribers in the second quarter. This is the largest subscriber churn in the company’s history, well below the 2 million initially predicted in April’s disastrous first-quarter report.
Half a century of endless growth in the streaming business to many in Hollywood and Wall Street when Netflix expects to lose 200,000 subscribers in the first quarter and more in the second quarter Suggested that was over.
The company was only about three months old, but revenue increased 9% to $ 7.9 billion. This would have been higher if the value of the dollar had not pushed down the value of currencies around the world. And it said it could add one million subscribers to investors in the next quarter. Netflix currently has approximately 220.7 million subscribers worldwide.
“First and foremost, we need to continue to improve all aspects of Netflix,” the company wrote in a shareholder letter, delivering streaming content to its subscribers without worrying about other potential sources of revenue: He added that he will continue to focus on the core service of doing. Its major competitors do.
“This freedom means we can serve big movies directly to Netflix without the need for an extended or exclusive theater window, and members can watch as needed without waiting for new episodes to drop each week. We’ll give you a quick glance, “the company added. .. “Focusing on member selection and management influences all aspects of the strategy and produces what we believe is a significant long-term business advantage.”
Over the past three months, Netflix has coordinated its business to better address the challenges it expects to face for the rest of the year. The company has fired about 450 employees. (As a result of downsizing, severance pay has reached $ 70 million.) In April, we announced the introduction of a new, cheaper subscription tier featuring advertising. Netflix plans to launch a low-cost ad layer in “a few markets where advertising costs are important” in early 2023.
He said he would crack down on password sharing more strongly to effectively monetize 100 million users who said Netflix is using the service for free. On Tuesday, Netflix said it launched two approaches to this in Latin America to find out which one was the most effective. One allows customers to “add members” and the other allows users to “add homes” for $ 3 per month.
Netflix has less emmy awards this month than its main rival, HBO, despite having more programming than the cable network and its streaming derivative, HBO Max, in addition to business issues. Was nominated for. HBO has won 140 nominations for Netflix 105. This is an indicator that emphasizes the difficulty of continuously producing high-quality, topical entertainment.
Wall Street suffered from streaming giants after the first quarter report, with Netflix’s share declining 46% from April and nearly 70% from the beginning of the year.
Netflix lost 1.3 million subscribers in the United States and Canada in the second quarter, compared to the loss of 400,000 in the same period in 2021. It said it increased revenue by 10% and increased subscriber retention throughout the quarter.
Revenue in the Asia Pacific region increased by 23%, adding 1.1 million subscribers to the region. In Latin America, subscriptions were flat, but revenue increased 19% compared to the same quarter last year.
The service was especially backed by Netflix’s strong Season 4 performance of Stranger Things, which generated 1.3 billion hours of viewing. This is the most common English show. The show also sparked a sensation of pop culture by featuring Kate Bush’s “Running Up That Hill” and Metallica’s “Master of Puppets”, raising new interest.
Netflix movie gains were more modest. “We are making good progress in movies,” the letter said. Adam Sandler’s basketball movie “Hustle” attracted the most user attention this quarter with 186 million hours of viewing. Rebel Wilson’s “Senior Year” has caught the attention of users for 161 million hours. The company announced on Tuesday that it has acquired Australian animation studio Animal Logic, increasing its investment in animation.