Netflix Back on a Growth Track After Suffering Million-Customer Loss

    Netflix has a message for its investors. The 2022 first-half loss of millions of subscribers could have been worse.

    The paid streaming leader lost in the second quarter about 970,000 subscribers. This was, however, less than half of the numbers Wall Street had estimated. The new season of “Stranger Things,” a popular series on the platform, cushioned the fall.




    The statement Tuesday cheered the investor and sent the stocks up 12% in extended trading. Netflix expects to sign new subscribers of around 1 million in the current quarter. This is short of the 1.83 million subscribers forecast for the third quarter, though it will reverse the first-half loss.

    Netflix stock rose to an intraday extended trading high of $225 before closing at $201.63 in New York Tuesday. The stock is down 67% this year.

    Despite threats of recession and increased competition, Netflix remains confident in its position in the streaming TV platform. The company said its market share was 7.7% in June, an all-time US high in TV viewing.

    Recovery by Netflix

     Netflix reacted to the slide in its subscribers, cutting costs and tweaking strategies in several areas. It plans to introduce lower priced service that includes advertisement in 2023. It is also testing ways to charge its subscribers for sharing the password.

    Netflix said its revenue grew 8.6% in the second quarter to $7.97 billion. It missed the estimates of $8.04 billion by Wall Street analysts, one of the reasons being a stronger dollar.

    The last quarter saw Netflix lose 1.3 million subscribers in Canada and the US, its largest region. In the Middle East, Africa, and Europe, it’s the second largest region; it lost 770,000 customers. This was the steepest decline reported from these locations ever since Netflix started giving individual market results.

    The growth in the Asia-Pacific region offset the losses suffered in top regions. After cutting prices in India, the company reported adding 1.1 million subscribers in APAC.

     Reed Hastings, CEO and Co-founder of Netflix had positioned Netflix as an advertising-free platform but now feel that commercials are necessary. After raising prices several times, Netflix is now the most expensive streaming platform.

    The company has tapped Microsoft Corp. to handle Ads technology and sales. It will roll out its advertisement-supported subscriptions in a few countries. COO Greg Peters says advertising will initially start in a small way and resemble other video business ads. In the long run, it can become substantial.

    Netflix has also started to release new episodes in batches instead of having all episodes of a season released at the same time. This will extend the life of its biggest shows and ensure subscribers keep the services going to finish the season. On Tuesday, Netflix announced it would acquire the Australian animation studio Animal Logic, which had worked on “The Lego Movie.”



    RELATED ARTICLES

    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    Wheon.com finance tips

    Wheon.com finance tips of 2025: What’s Changing and Why It Matters

    The financial world never stands still, and 2025 is no exception. This year, we’ve witnessed...
    wheon.com finance tips

    Wheon.com Finance Tips: Top Financial Services Trends of 2025

    Wheon.com finance tips are more important than ever, given how fast money matters are changing....
    Smart Gifting Strategies - How to Gift Annuities While Minimizing Tax Impact

    Smart Gifting Strategies – How to Gift Annuities While Minimizing Tax Impact

    For individuals who are fortunate enough to have more savings than they need for retirement,...
    What is a Yoga Swing

    What is a Yoga Swing?

    A yoga swing is a fabric hammock or collection of straps that hold your body...
    healthy habits

    Healthy Habits For Your 20s: A Handbook for Long-Term Health

    Your 20s are a transformative decade, shaping your destiny, health, career, relationships, and overall well-being...
    how to make Studio Ghibli-style images

    How to Make Studio Ghibli-Style Images for Free: Learn Here 

    Studio Ghibli’s signature artwork fashion—lush backgrounds, whimsical characters, and problematic information—has captivated audiences for many...
    well health organic best ways to remove dark spots on face

    Well Health Organic Best Ways to Remove Dark Spots on Face: Natural Ways to Banish Dark Spots

    Well health organic best ways to remove dark spots on face"—that's what when you typed...
    wellhealthorganic.com : neem and aloe vera juice

    Wellhealthorganic.com : Neem Aloe Benefits – Learn The Hack and Thrive! 

    Wellhealthorganic.com : neem and aloe vera juice is a simple, natural mix that can really...