Netflix announced its second-quarter 2022 losses and earnings on Tuesday. According to the reports by the company, they lost 970,000 subscribers in the first three-month period. But increased its profits unline last year’s Q2. Here are the details…
Netflix estimated over 1 million subscriber loss
Netflix’s subscribers decreased by almost 1 million in the second quarter of 2022. However, this loss did not match the company’s predictions. Even though the launch of Stranger Things Season 4, the company lost a significant number of subscribers. The reports show the new features of Netflix damaged itself. This can be an example for all the streaming platforms.
After the release of Disney+, Netflix’s subscriber count started to drop. Later, the changes the company made on memberships did not get the expected attention from the users. For example, Netflix announced a new ad-supported streaming subscription plan with Microsoft.
Although these losses, Netflix reported the company made a profit of $8 billion with $1.6 billion in revenue. This profit is 9% more than last year’s Q2. We will see what will happen in the following months of Netflix.
Netflix and Microsoft to launch ad subscriptions in 2023
The company will launch a cheaper subscription plan in early 2023. They are starting with a specific region, where advertising expense is the strongest. Users will have Netflix with lower prices but with advertisements. It is unclear how many subscribers will have to pay for the new services.