last quarter, netflix announced that had lost subscribers for the first time in history, breaking the growth that had lasted for more than a decade. Now the second quarter results have been revealed and these imply a greater losses for Netflix. These show a decrease 1.3 million subscribers only in the United States and Canada over the last 3 months, from the end of March to the end of June.
The loss of almost one million subscribers worldwide, this may seem like a disaster, but society expected worse. In fact, his foresight was to lose 2 million subscribers during the second trimester. However, this is still bad news, as Netflix suffered some losses in 1.3 million subscribers on the territory of the United States and Canada. This means double the fall of 600,000 subscribers in these countries during the first quarter.
Despite the losses, Netflix is optimistic about its future plan
Here comes that strategy that will allow Netflix to get out of where it is and see the number of subscribers grow again on its platform, or so they believe. It’s nothing more than using the plan subscription with advertisingsaving you money compared to basic plan the company. Thus, we expect to see a subscription model that costs less that €7.99 per month of the current cheapest plan. This should be released sometime in 2023but we don’t have any yet Date concrete. However, as we’ve said in other news, this won’t have all of its content initially available and whether or not it happens will be up to Netflix.
The company will have to renegotiate Licence content with the studios so that they authorize the diffusion of their series and films within the framework of the subscription with advertisements. That said, Netflix feels optimistic around that, ensuring that in the long run, the ad-supported model allows you to attract more customers and benefits thanks to your low prices. Moreover, he adds that the viewing time and viewership grew in the United States, where it reached an all-time high of one 7.7% in June 2022.
“Our hope is to create an advertising model that is better than linear TV, more fluid and relevant for consumers, and more effective for our advertising partners.”
Netflix sees revenue jump 9% this year, but rivals are closing in
Netflix sees a huge rise in its shares, seeing that the value of these has increased by one 20% in the last 5 days. The latest news announcing the alliance with Microsoft as a partner in future ad-supported subscription, was partly responsible for the growth. But, at the same time, it is whispered that Microsoft could buy Netflix, taking advantage of the fact that he is not at his best right now. In fact, this first union between the two companies could be considered a first approach to such a statement.
For this reason, the loss of subscribers has not hit the business as hard as on other occasions, in fact, Netflix has increased its profits by 9% compared to 2021. It happened like this, $7.3 billion a $7.97 billion This trimester. Part of this result is due to the success of the fourth season of stranger thingswhich became the second most-watched series in Netflix history, behind The squid game.
However, its competition in streaming services is closing in on Netflix, which is about to be overtaken. For example, in the second quarter in the United States, the market share was one twenty one% for netflixa twenty% for First video, hbo-max with a fifteen%, Disney+ with a 14% Yes Paramount + with a 6%. But don’t underestimate the latter, as Paramount Plus’s subscriber count has grown to almost 40 million subscribers. In contrast, HBO Max won 13 million subscribers and Disney got more than 8 million subscribers that are added to your platform.