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Netflix loses almost a million subscribers; thanks to Apple TV, HBO Max, Amazon Prime and Disney+Hotstar

Netflix said it lost 970,000 subscribers in Q2, after forecasting a loss of 2 million.

Netflix loses almost a million subscribers; thanks to Apple TV, HBO Max, Amazon Prime and Disney+Hotstar
Courtesy: Netflix/Google
  • Team OTTplay

Last Updated: 07.43 PM, Jul 20, 2022

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Netflix has continued to lose subscribers in recent months, reporting its second consecutive quarter of subscriber losses—a first in the company's history. The streaming service reported it lost 970,000 customers in the second quarter of the year, bringing its total global subscribers to 220.67 million. It had anticipated losing 2 million subscribers in the coming days, although the losses highlight the urgency with which Netflix must return to growth.

The sustained success of Stranger Things, Netflix's science fiction/horror series that debuted in 2016, likely saved the company from further losses. Following the debut of the series’ fourth season in late May, Netflix claimed, fans watched a total of 1.3 billion hours of it over the next four weeks—more than any other English-language series in the service’s history.

This year, the business let off 150 employees in May and another 300 in June, in addition to several contractors. Netflix has also begun to address password sharing and is investigating ways to stop it. Recently, it revealed that it was testing a new service in five more Latin American nations, enabling customers to "add a home" for an extra $2.99 per month. It was already experimenting with ways to commercialise password sharing in other Latin American countries.

According to Netflix, an extra 100 million homes are utilising the service without paying for it. Netflix is going to launch a lower-cost ad-supported plan, which it formerly opposed but is now embracing to entice consumers.

Netflix saw the pace of customer additions slow over the past couple of years as it faced competition from an array of new entrants, including Walt Disney Co.’s Disney+, Warner Bros. Discovery Inc.’s HBO Max and Apple Inc.’s Apple TV+.

"Netflix is currently the market leader in video streaming, but until it discovers additional franchises that appeal broadly, it will struggle to remain ahead of competitors vying for its crown," said Insider Intelligence analyst Ross Benes.

Netflix began expanding out last year, sensing potential difficulty, by offering free video games to its streaming service.

Unlike its competitors, Netflix does not broadcast live sports. As a result, it would have to possibly include the advertisement choice between or at the end of its online series or movies. One of the many reasons individuals prefer subscription-based content watching is the absence of advertisements. Unrelated to that, it indicated that subscriptions will continue to increase, but at a far slower rate than in previous years. It forecasts that growth will be highest in the second half of the year.

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