Netflix He did not say his last word: the streaming giant lost subscribers again in the second quarter, but less than expected, and is betting on a rebound this summer, giving hope to investors who feared a free fall. The industry pioneer announced Tuesday that he had lost 970,000 subscribers between the end of March and the end of June, instead of the two million he expected.
The service, which now has 220.67 million paying subscribers worldwide (including 10 million in France), was very disappointed in the first quarter when it admitted losing subscribers for the first time in ten years. In a sign that Tuesday’s news reassured the market, its stock rose more than 7% in electronic trading after the close of the New York Stock Exchange.
The Californian group published a turnover of 7.97 billion dollars for the period from April to June, a result lower than expectations that it put in particular on account of an unfavorable exchange rate. On the other hand, it obtained 1,440 million net profit, better than expected.
Netflix it hopes to recover one million subscribers in the third quarter and thus reach 221.67 million paying subscribers. A figure, however, still below that of the end of 2021.
To achieve this, the platform is especially counting on the success of the fourth season of the science fiction and adventure series for teenagers. Strange thingswhich has just concluded, and also about the imminent premiere of the gray mana film by the Russo brothers, the directors of avengers endgamethat could become a franchise if it wins over the public.
After years of rapid conquest, and after making the most of the pandemic and health restrictions, Netflix is experiencing a correction effect, amplified by the competition that has saturated the market in recent years. Added to the loss of subscribers is an unfavorable economic context, from the war in Ukraine to inflation and the strength of the dollar.
In the first quarter, the service had lost 200,000 subscribers worldwide compared to the end of 2021. The news had plunged its stock price by 25%. The bosses of the platform then announced, in April, their intention to offer a cheaper subscription formula but with advertising, after years of rejecting this less prestigious solution.
The company specified last week that the new subscription would be added to the three options already available (“Essential”, “Standard” and “Premium”), the cheapest being ten dollars a month in the United States. His goal is to launch the formula in early 2023.
In April, Netflix He also indicated that he was going to tighten the screw on the side of the exchange of identifiers and passwords, which allow many people to access the content of the platform without paying. A shared account billing system (already in the experimental phase) should “roll out next year as planned,” confirmed Greg Peters, chief operating officer.
The slowdown in the growth of the platform has also translated into layoffs: more than 400 employees were laid off during the last quarter, mainly in the United States. But the group continues to invest in content production: it announced the acquisition of the Australian animation studio Animal Logic, which has about 800 employees.
Source: BFM TV
Emily Miller is a voice to be reckoned with in the world of opinion journalism. As a writer for News Rebeat, she brings a unique and thought-provoking perspective to current events and political issues, delivering insightful and engaging commentary.