Throughout the second quarter of 2022, Netflix reported losing nearly 1 million subscribers. This is because more and more customers are unsubscribing.
Based on the breakdown, Netflix lost 970,000 of its subscribers, leaving 221 million subscribers. However, the realization of the number of lost subscribers is lower than Netflix’s previous projection of 2 million subscribers.
This is not the first time this situation has happened. Netflix has been losing subscribers since April 2011 which was followed by staff cuts and a drop in its share price.
“Current conditions are very challenging, losing 1 million and mentioning success, but we are still targeting quite high growth next year,” said Netflix Co-Chief and Founder Reed Hastings, quoted from geotv, Wednesday (20/7/2022).
Several factors are considered to be the cause behind this condition, including a large number of competitors and rising subscription prices.
Furthermore, Netflix recorded the largest level of subscriber loss since the company was founded, with the United States and Canada being the two countries with the largest number.
However, Netflix’s profit in the same quarter was recorded at US$1.4 billion, up from US$1.3 billion in the same quarter last year. Revenue grew 9.6 percent on an annual basis to US$7.9 billion. Ampere Analysis Executive Director Guy Bisson said the decline in subscriber numbers was something they couldn’t avoid.
Ampere Analysis Executive Director Guy Bisson said the decline in subscriber numbers was something Netflix couldn’t avoid.
“When you’re a market leader, there’s only one way to go, especially if a lot of competition comes along, just like what Netflix is facing right now,” he explained.
It is known, that Netflix became the king of video streaming when the Covid-19 pandemic hit the world in 2020 when many people were forced to spend their time at home. However, as the pandemic subsides, Netflix seems to be struggling to add new subscribers and keep loyal ones.