Netflix lost 970,000 subscribers in the second quarter of 2022, during which time it made a net profit of $1,441 million (about 1,400 million euros), it revealed on Tuesday.
The data disclosed in the company’s accounting report are better than the March forecastwhich predicted the loss of up to two million subscribers.
In the three months in which its shares fell and laid off more than 300 workers, Netflix managed to contain, despite everything, the decline in subscribers increased by the emergence of competitors such as Disney and Apple in streaming.
The disaster was such that its results were highly anticipated in the entertainment industry, but after the report’s release, its shares soared more than 10% on the New York Stock Exchange.
Additionally, the California-based company has sparked optimism predicting that for the next quarter it will recover lost users.
“Our challenge and our opportunity is to accelerate our revenue by adding new customers while continuing to improve our product, content and marketing as we have done for the past 25 years,” he said. in a letter to investors.
However, the data reflects a stagnant economic model.
What’s new with Netflix?
Although its forecasts indicate that it will recover the million users lost through growth in the coming semesters, these are a far cry from the four million it added in the same period of 2021.
If the prediction is true, Netflix would face the end of the year with exactly the same number of active accounts as at the start of 2022.
On the other hand, its total turnover increased by 8.6%, which was affected by the new interest rates and the variation in the value of the dollar, since, ignoring this situation, the company places the increase to 13%.
The company’s founders, Reed Hastings and Ted Sarandos, promise to “adjust its cost structure” based on its “current growth rate”.
In addition to laying off 300 other employees, the company has already signed a contract with Microsoft to introduce advertising on its servicesomething that will start happening in early 2023.
With regard to the other measure, for charge extra to share an account between different familiesNetflix has not advanced its plans beyond the pilot program in Chile, Costa Rica and Peru.
By territory, the Asia-Pacific region is the one that most enchants the streaming giant, which already equals Latin America in terms of business volume, adding more than one million customers.
However, its two main markets, Europe and North America, concentrate subscriber lossesespecially in the United States and Canada.
Despite the stagnation, Netflix has rebounded its lead in the industry and bragged about its ability to influence global popular culture with shows like “Stranger Things,” which topped social media mentions.
With 220 million customers, Netflix is the main streaming platform.