Netflix just released its second quarter earnings yesterday, and the news wasn’t entirely good. Although the streaming giant’s revenue growth continued year over year, it also lost nearly a million subscribers. Still, Netflix expected to lose almost two million, so it could have been worse.
For the three months ending June 30, revenue grew nine percent year over year. Subscribers were down 970,000, but Netflix had previously forecast a loss of two million. Netflix still has 220.67 million subscribers, so that amounts to less than a single percent of the platform’s total user base.
Still, it’s not entirely promising. Those subscribers decided to quit even though Netflix had recently published new seasons of some of its most popular shows, including Stranger Things and The Umbrella Academy. A recent survey by the BBC also noted that young people believe Disney+ has overall better quality programming, leading many to cancel their Netflix subscriptions in order to weather rising the cost of living.
Analysts speaking to CNBC expect Netflix to still grow by 1.8 million subscribers by year end, which has boosted Netflix’s stock price.
Elsewhere in the earnings report, Netflix noted the recent rollout of its crackdown against password sharing. The rollout started in Latin America with several countries now facing additional fees for using Netflix accounts outside of their own home. So far, this new policy only affects TVs, with mobile devices like phones and tablets still able to access Netflix accounts regardless of location.
Netflix also noted it plans to launch its lower-priced ad-supported tier sometime in 2023 starting with a handful of markets.
Netflix's latest show, a live-action Resident Evil, has unfortunately arrived with some of the lowest ratings ever for the platform. According to Rotten Tomatoes, just 22 percent of viewers enjoyed their time with Resident Evil. That’s despite the show being perhaps the most faithful Resident Evil adaptation to date.
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