By MICHAELLIE DTKE-AP Technical Writer
San Francisco (AP) — Netflix is a video streaming service that loses nearly a million subscribers in the spring and launches cheaper options with commercial disruptions amid intensifying competition and rising inflation that weighs on households. Increases the urgency behind our efforts.
The April-June shrinkage of 970,000 accounts, released Tuesday as part of Netflix’s second-quarter revenue report, is by far the largest quarterly subscriber loss in the company’s 25-year history. But that could have been a lot worse, given Netflix’s management’s announcement of an April forecast requiring the loss of 2 million subscribers in the second quarter.
It combines less serious losses to subscribers with the prospect of seeking a return to growth between July and September. After the numbers came out, it helped raise Netflix’s tattered stock by 7% in an extended deal.
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Netflix’s April-June regression is as follows: Loss of 200,000 subscribers For the first three months of the year, Netflix’s total subscribership has declined for the first time in consecutive quarters since the transition from email DVD rentals to video streaming began 15 years ago.
The loss of nearly 1.2 million subscribers in the first half of this year is in contrast to the pandemic-led growth Netflix enjoyed in the first half of 2020, when streaming services gained nearly 26 million subscribers.
Despite the recession, Netflix generated $ 1.4 billion in quarterly revenue, or $ 3.20 per share, up 6% from the same period last year. Revenues increased 9% from the same period last year to nearly $ 8 billion.
Netflix ended in June and had 220.7 million subscribers worldwide. Much more than new competitors like Walt Disney Co. and Apple. And as a hopeful sign, Netflix management predicts that the service will add about 1 million subscribers between July and September, indicating that the worst slump may have ended. I am.
Netflix’s spring subscriber losses weren’t as bad as investors and management feared, but the recession is a challenge that companies in Los Gatos, California are currently facing after decades of unlimited growth. It was reminiscent of.
Netflix’s share price has plummeted nearly 70% so far this year, wiping out approximately $ 180 billion of shareholder assets. Since then, other video streaming services have made great strides in attracting viewers. Apple has won acclaim for its award-winning television series and movie lineup, and Disney’s popular family title lineup continues to be in the spotlight.
At the same time, Netflix is raising prices to help pay for its own original shows, as the highest inflation rate in 40 years has restrained consumers from spending on discretionary items such as entertainment.
Such factors help explain the once despised April announcement of Netflix by cracking down on rampant sharing of subscriber passwords and providing a layer of cheaper services, including commercial interruptions. .. Netflix said Tuesday that both ad-supported plans and password-sharing crackdowns would begin early next year without revealing details. The company doesn’t say how much it will cost for a streaming option with commercials.
Netflix took a new step last week when it announced that it would put together an ad = supported option. Team up with Microsoft Deliver commercials.
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Netflix Q2 subscriber losses grow, but not afraid | National News
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