Netflix lost almost 1 million subscribers in Q2 2022 due to the increasing number of people sharing passwords rather than paying for accounts. Netflix has lost 970,000 members, which is a significant decrease from the 2 million predicted loss.
Netflix lost 1 million customers last year but still managed to increase its revenue by 8.6%. However, the growth rate is slower than in the past quarters.
According to the company, this is due to an increase in average paid members and average revenue per member. This revenue figure would have been higher, but Netflix lost $339 Million due to the foreign currency impact.
After-hours trading saw the share price rise by 7%, as the company’s actual results were better than anticipated. Netflix anticipates that Q3 2022 will see a 1 million increase in subscribers compared to Q3 2020’s 4.4million.
The streaming giant confirmed that the lower-priced ad-supported tier has been confirmed. This has been rumored for years. It will launch in 2023 in countries where people spend more. The cheaper tier will be expanded to other regions once Netflix has figured out how it works.
The company hopes to bring more subscribers. Also Read