Popular streaming platform and production company, Netflix has lost 970,000 subscribers during the second quarter, performing better than its expectations of a 2 million loss, the company disclosed on Tuesday.
During the three-month period ending June 30, Netflix reported a loss of 970,000 subscribers after the streaming giant predicted a net loss of two million subscribers. While the results beat the projection, it is still the largest quarterly loss in the company’s history.
In the first quarter, Netflix lost 200,000 subscribers, which prompted the streaming giant to send a warning that it expected to lose an additional 2 million subscribers during Q2. Though the quarter still ended with a net loss in subscribers, the streaming giant is projecting it will add 1 million subscribers in Q3.
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In April 2022, The Film Conversation gave an explainer of what caused the loss of 200,000 subscribers in the first quarter after Netflix joined other companies that exited Russia in protest of the invasion of Ukraine.
Netflix now has a total of 220.67 million subscribers, a decrease from the 221.64 million reported at the end of Q1. Revenue hit $7.97 billion for the second quarter, representing a roughly 8 per cent year-over-year growth in part due to a “stronger U.S. dollar,” according to Netflix’s letter to shareholders, while net income landed at $1.44 billion.
By region, Netflix saw the most losses in the U.S. and Canada, despite major English-language series like Stranger Things‘ fourth season premiering during the quarter. UCAN saw a 1.3 million loss in subscribers, dropping to a total of 73.3 million paid subscribers in the region.
The Europe, Middle East and Africa region also saw a decline in subscriber growth during Q2, losing 770,000 subscribers, while Latin America saw a modest addition of 1,000 paying subscribers. The Asia-Pacific region emerged as the strongest contributor to Netflix’s subscriber growth, bringing in 1.08 million subscribers during the quarter.