Pages

Netflix Reveals Its Global Subscriber Count Has Dropped By One Million

Last quarter, Netflix revealed that it was losing out on so many subscribers for the first time in over ten years. The news was definitely a major blow for the company that many consider being exclusive for streaming.

Now, Netflix is sharing its earnings for Q2 and when you come to think of it, things didn't get much better. The report revealed how global subscribers dropped by almost one million.

To be more specific, Netflix highlights how the drop for regions like the US and Canada was even more significant, surmounting 1.28 million. And these are just figures from March to June of this year.

While it may sound like a much better projection when compared to losing out on nearly 2 million subscribers around the globe, this drop in Canada and the US is more than double the amount we’ve seen being reported for the last quarter.

The shocking news comes just seven days after we saw the company make a breakthrough announcement about partnering up with Microsoft so that it can run ads on the platform and better its revenue and sales.

But the launch of ads won’t be happening anytime soon as the program is planned for the early part of next year. Therefore, you might want to enjoy the video streaming service without ads, for as long as it lasts.

Meanwhile, executives at the company aren’t losing hope just yet. They certainly feel optimistic about their advertising venture and hope it can assist in profit growth. This is coupled with the fact that from August onwards, Netflix will be adding additional costs to its paid subscribers.

Hence, those days of sharing passwords with your friends and loved ones for free are now over. But if you’d still like to share, the company will charge you for every address you share.

For ads, executives hope to roll out the venture in those markets where it feels like advertisers might be spending the greatest amount of money.

Plans for delivering the best advertisement model are running at an all-time high and Netflix is determined to make the most out of this decision.

Despite the great hopes attached, Netflix revealed how it won’t be able to incorporate all of its content into the ad-supported business model. This has to do with some stringent policies regarding its licensing agreements with other partners.

As revealed by the firm’s Co-CEO, Netflix does plan on clearing out some of its content but obviously not all of it, just in time for the launch of the ad.

Other interesting findings from this quarter’s earnings report are related to increased viewing times, thanks to a recent study that pointed out that viewers in the US were tuning in for longer durations. That is what led to a 7.7% growth in the US market alone.

For its YoY, the company’s revenue saw a rise of 9%. These are definitely some plus points considering the fact that the organization was left with no choice but to consider laying off hundreds of its employees.

Common hit shows that really impacted the platform positively included Stranger Things Season 4 which immediately became the second most watched show. It trailed closely behind Squid Game, which will also soon have a season two that most fans are super excited about.

Netflix has also outlined how password sharing between paid and unpaid subscribers could be seen as another reason for the decline in subscribers. That’s why it’s not taking any more chances and are soon introducing simple ‘paid’ sharing plans for all.

The tests for such packages have already begun across a series of countries in South America and if things go well, we’ll be seeing it extend to other parts of the globe too.


Read next: Netflix Tests New ‘Add A Home’ Payment Feature Amid Crack Down Against Password Sharing

No comments: