Netflix loses almost 1 million subscribers in three months and wants to regain them this quarter
Netflix has presented its financial results for the last quarter with a historic loss of subscribers: 970,000 people have unsubscribed from the service in the second quarter of 2022. Although this is a significant figure, the company was predicting to lose up to 2 million.
It should be remembered that in the first quarter of the year it lost 200,000 users and that already seemed like a lot for the streaming giant that there was a time in its history when it seemed unstoppable. If the results of the first three months of the year took away 150 jobs and 300 a few weeks later, we will see what can happen now.
The company, which has 220 million subscribers worldwide, has been optimistic that it can regain those one million users between July 1 and September 30. And it wants to achieve this with the changes it is implementing… and that will make the platform lose part of what were its basic principles.
On the one hand, Netflix is exploring different alternatives to stop sharing passwords. As its plan is to make its customers pay more for sharing, it expects a boost to its revenues, which has contained what could have been a sharp drop in the stock market after the results announcement.
Another of the future plans with which it hopes to resume the growth of years ago is to offer ads. The company, which used to be known for not having advertising (which it has denied many times), now wants to offer lower rates than the current ones in exchange for advertising. This will translate into an experience similar to watching TV. For this mission it has just joined forces with Microsoft who will help them with the technology.
About the plan to include ads to their movies and series, Netflix representatives said when presenting their latest results that “we will probably start in a few markets where ad spending is significant”.
And in addition, it has just been learned that when Netflix’s cheaper ad-supported subscription plan launches, subscribers may find themselves unable to access some of Netflix’s titles, which are available for other plans. Netflix co-CEO and chief content officer Ted Sarandos has said, in presenting the latest results, that the upcoming subscription option will not include all of its licensed content from Warner Bros, Universal (the producer of Russian Doll) and Sony Pictures Television (producer of Cobra Kai).
And it seems that these audiovisual giants do not want their content to reach the audience through ads. Apparently, the service will also have to renegotiate the conditions of some of the oldest series it broadcasts, such as Breaking Bad.
Many shows and movies from international studios and distributors will be missing, unless the company can convince them to change the original agreement between Netflix and these production companies.