As a result of strong competition and consumers’ tightening purse strings, Netflix stated for the second consecutive quarter that it had lost members. However, the corporation encouraged investors that better times would soon arrive.
After the most recent quarter, Netflix had slightly under 221 million subscribers, which was less than anticipated given the loss of 970,000 paying users.
According to Netflix’s Q2 earnings report, the number of subscribers worldwide fell by 1 million, with a drop of 1.28 million in the US and Canada alone between the end of March and the end of June. This comes after the company reported losing subscribers for the first time in over a decade last quarter.
Reed Hastings, co-founder and co-chief of the firm, stated in an earnings presentation, “It’s tough in some respects to call a million-dollar loss a success, but we’re set up extremely nicely for the coming year.”
The corporation projected one million new paid members for the current quarter in its results report. In after-hours trading, Netflix’s stock was marginally higher, reflecting investors’ continued commitment to the company.
Analysts commented that the results were unsettling despite not being as poor as predicted.
Analyst Ross Benes stated, “Netflix’s subscriber loss was anticipated, but it remains a painful spot for a corporation totally dependent on subscription revenue from customers.”
Benes added, “If it doesn’t find other franchises with broad appeal, it will eventually struggle to stay ahead of competitors that are pursuing its crown.”