Netflix subscriber count is decreasing according to the company’s Q2 earnings report. The company experienced a 1 million global subscriber decline, with a reduction of 1.28 million in the US and Canada between March and June.
Netflix subscriber count drops in the US and Canada
Although the Netflix subscriber count lost in the US and Canada is double the 600,000 decline it recorded for the first quarter, it is still better than its prediction of a global loss of 2 million. As of right now, Netflix claims to have 220.67 million global paid customers in addition to 73.28 million in the US and Canada.
This news comes almost a week after Netflix revealed a collaboration with Microsoft for its less expensive, ad-supported tier, which it plans to introduce in the first few months of 2019. Netflix highlights in the letter that its current plans will continue to be ad-free. According to Netflix executives, “over the long run, we think advertising can enable substantial incremental membership (through lower prices) and profit growth (through ad revenues).” Netflix executives are nonetheless upbeat about the possibility of an ad-supported tier.
It will initially be used in markets where advertising invest the greatest money. “Our hope is to create a better-than-linear-TV advertisement model that is more seamless and relevant for consumers, and more effective for our advertising partners,” the Netflix executives told in an earnings call. However, because of content licensing agreements, not all of its material will be accessible on its ad-supported plans. Ted Sarandos, co-CEO of Netflix and head of content, said during an earnings call that the firm “will clear some content, but certainly not all of it” by the time the new tier begins.
Additionally, according to Netflix, viewing time has grown. According to a report by the research company Nielsen, Netflix subscriber count and US TV viewership reached an all-time high of 7.7 percent in June 2022, up from 6.6 percent in June of the previous year.
From $7.3 billion in 2021 to $7.97 billion this quarter, revenue grew by 9% annually. Despite the streamer experiencing a few setbacks recently, including two separate layoffs that affected hundreds of employees, there was some encouraging news. Following the Korean-language blockbuster Squid Game, which Netflix confirmed will be returning for a second season in June, Stranger Things’ release of season 4 propelled the series to the second-most watched show on the service. Did you find your Vecna song on Spotify following the Stranger Things Season 4? The plans of Netflix to purchase Animal Logic, the animation studio responsible for The Lego Movie, were also disclosed in the company’s earnings report.
One strategy Netflix is looking at to combat a decline in members is an ad-supported tier. The business is also working to retain its current subscribers. Netflix, however, wants to keep its free users as well, and it partially attributes the first dip in its subscriber base last quarter to password sharing.
According to Netflix executives, the company is searching for a “easy-to-use paid sharing option” that it plans to provide in 2023. Netflix began testing the ability to add subaccounts for subscribers who live outside the primary account holder’s home in Chile, Costa Rica, and Peru in March. This week, Netflix increased the scope of its efforts to combat password sharing, and it started enabling customers in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic to purchase an extra “home” outside of their main residence where they may access Netflix on all devices.
The increased competition from newer firms in the streaming market like Disney Plus, Paramount Plus, and HBO Max may be one of the biggest dangers facing Netflix. Nearly 40 million people now subscribe to Paramount Plus, 13 million more people do so for HBO and HBO Max, and 8 million more people sign up for Disney Plus. The ad-supported option for Disney Plus will debut later this year, and the service will also use livestreaming for some programs, such Dancing With the Stars, which Netflix is presently trying.
How many subscribers does Netflix have?
According to Statista, Netflix had 220.67 million subscribers worldwide in Q1 2022.
Netflix subscriber growth chart
Netflix subscriber count from 1st quarter 2013 to 2nd quarter 2022 can be seen below. The Netflix subscriber growth chart we share below is prepared by Statista:
