Netflix reported losing subscribers for the second quarter in a row as the streaming giant battles fierce competition and viewers cutting costs.
The loss of 970,000 paying customers in the most recent quarter was not as big as expected and left Netflix with just shy of 221 million subscribers.
“Tough in some ways, losing a million and calling it success, but really we are set up very well for the next year,” the company’s co-chief and founder Reed Hastings said in an earnings presentation.
The company said in its earnings report that it had expected to gain a million paid subscribers in the current quarter. Netflix shares were up slightly in after-market trades — a sign that investors were remaining faithful.
Meanwhile, Netflix is working with Microsoft to launch a cheaper subscription plan that includes advertisements, which The New York Times has reported could launch by the end of this year.
Netflix has been investing heavily in original content such as hit shows ‘Squid Game’ and ‘Stranger Things’ to fend off powerhouse competitors such as Disney, with its Marvel and Star Wars franchises.
The recently released fourth season of ‘Stranger Things’ racked up 1.3 billion hours of viewing in just four weeks at Netflix, making it the platform’s biggest-ever English language television release, according to the company. Meanwhile, some 284 million hours were spent watching the latest season of ‘The Umbrella Academy,’ executives said.
Challenges facing Netflix include changing habits, as house-bound people who signed on for the service during the height of the pandemic are re-evaluating their subscriptions now that they are resuming their former lifestyles.
This article was first published by Capital News.
