The streaming service Netflix lost subscribers again in the second quarter. The drop was about a million paying customers, and so it was less than the US company feared. Netflix’s share rose 12 percent after the stock market closed.
ANP, Netflix, Yahoo Finance, Reuters
In April, the company announced that it had fewer users in the first quarter of this year for the first time since 2011. For the second quarter, Netflix then reported a loss of another two million subscribers.
The biggest loss occurred in the North American region, where a total of 1.3 million people canceled their subscriptions last quarter. In Europe, Middle East and Africa (EMEA), 770,000 Netflix subscriptions have been suspended. In contrast, Latin America and Asia/Pacific (APAC) added subscribers: 10,000 and 1.08 million, respectively.
Expected growth again this quarter
Netflix currently has 220.7 million subscribers worldwide. The company believes that the bottom has been reached for the time being. In the summer period from July to September, the streaming service expects to gain 1 million subscribers again.
According to experts, the decrease in the number of subscribers is partly due to the high price of the platform. As a result, some people may find their Netflix subscription too expensive. Netflix faces stiff competition. Web retailer Amazon and entertainment giant Walt Disney have been working on their own streaming services for some time now.
By creating new seasons of popular series, Netflix hopes to entice people to stay as a customer for longer or return to the platform. So the fact that the drop in subscribers was limited in the last quarter is mainly due to the new season of “Stranger Things”, which many people wanted to see.
Netflix has more ideas to find the way again. For example, the company plans to come up with a new, cheaper subscription where viewers see ads before, between and after movies and series. On Tuesday, it was also announced that the company had acquired Australian animation studio Animal Logic. This company is best known for its work on “The Lego Movie” and is likely to start working on new Netflix productions in the near future.
Despite falling user numbers, annual revenue increased 9% to just under $8 billion. Earnings were more than $1.4 billion, compared to less than $1.4 billion in the same quarter last year.
Investors seem to be very excited about the numbers. Netflix shares rose 12 percent in after-hours trading on Wall Street.
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