It looks like Netflix's subscriber losses accelerated this spring. After losing 200,000 subscribers between January and March, Netflix's Q2 earnings report confirmed another loss of subscribers between April and June, but this time more, close to 1 million. Netflix's financial report pointed out that as of June this year, there were 220.67 million subscribers, a decrease of 970,000 from 221.64 million in the same period last year. In fact, this loss data is less than the company expected. CFO Spence Newman had previously predicted that they would lose 2 million subscribers. Despite user loss, Netflix's Q2 revenue increased by 9% compared to the same period last year. In Q2, Netflix attributed lower user growth to the global economy, the war in Ukraine, and account sharing. Netflix currently predicts that there will be a rebound in subscriptions of 1 million users in Q3 (July-September) this year, mainly driven by the broadcast of Stranger Things Season 4. However, Netflix predicts that Q3 revenue growth will only be 5%. |
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