Netflix loses a million subscribers, but still sees the glass half full

Tuesday 19th July Netflix reported the loss of one million subscribers in the second quarter of 2022. This is the second consecutive quarter in which the streaming giant loses subscribers, after ten years in which the balance had always been positive, and the largest loss of subscribers in its history of the platform, confirming a moment of difficulty for the company as well as for the streaming sector in general. However, the April report predicted a decline of 2 million subscribers for the second quarter, and having lost only half is considered a positive result, as evidenced also by the growth in Netflix shares of 7% at the time of the announcement. Netflix also reassured its investors about the growth prospects for the coming months, saying “optimistic about the future“.

Netflix will make those who accept advertising pay less

The streaming giant has announced that it will introduce a new subscription plan, cheaper but with advertising. The service will be supported by Microsoft and it is not yet clear when it will be introduced

After losing 800,000 subscribers in the first quarter of the year and being forced to lay off 150 employees following the subsequent stock market crash of the company, Netflix worked hard to minimize the crisis and increase their earnings, which was $ 700 million lower than expected in the first quarter. Of course, Netflix’s user base can’t grow indefinitely, but the company wants to work for keep the subscribers it already has and possibly persuade some of those who unsubscribed in the first half of the year to return. To this end, the company has expanded its gaming offer, both to offer its users a broader and more interesting service and to derive or test ideas from which to start new television productions. Subsequently, the announcement also came that who will agree to have advertising in their service will pay the subscription less.

With its 220.7 million subscribers, Netflix is ​​still the most used streaming service in the world, and already in the third quarter of the year, the company expects to recover one million subscribers. The streaming sector is certainly in crisisbut be careful to give him up for dead.