“Stranger Things” season four.
Netflix
Netflix said on Tuesday it lost 970,000 subscribers in Q2, after forecasting a loss of 2 million
The company had lost 200,000 subscribers in Q1.
It’s addressing slowing growth by cracking down on password sharing and introducing an ad-based plan.
Netflix said on Tuesday that it lost 970,000 subscribers in the second quarter of the year. It had projected 2 million.
The company lost 200,000 subscribers in first quarter of 2022. It’s blamed its slowing growth on a number of factors, including economic strains, password sharing, and increased streaming competition.
Netflix lost subscribers in the second quarter even with the premiere of “Stranger Things” season four, which has become one of the company’s most-watched launches ever, behind just “Squid Game.”
While it lost subscribers for the second straight quarter, Netflix is bullish about Q3 and forecasted adding 1 million subscribers during the quarter.
The company conducted two rounds of layoffs this year, cutting 150 roles in May and then 300 more in June, on top of a number of contractors.
Netflix has already started addressing password sharing. It announced on Monday that it was testing a new feature in five more Latin American countries, by allowing users to “add a home” for an additional $2.99 per month. It was already testing ways to monetize password sharing in other Latin American regions.
In its Q1 earnings report, Netflix said that it projected an additional 100 million households were using its service without paying for it.
Netflix is also planning to introduce an ad-supported plan, something it had previously pushed back against but is now embracing to attract subscribers. Many of its rivals, like HBO Max and Hulu, already have ad-supported tiers, and Disney+ will launch one this year.