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Netflix continues to lose subscribers. In the second quarter of this year, they decreased by 970,000. The company announced this during the presentation economic results for the past three months. It’s a lower decline than she herself expected, her original calculations predicted a drop of two million subscribers.
According to the CEO, the premiere of the fourth season of the series Stranger Things was the decisive factor that slowed down the departure of paying clients.
Globally, Netflix now has 220.67 million subscribers. The reported decrease is the largest in its entire history. It has been losing users mainly in its home US and Canada, where it faces the strongest competition from other streaming services. Households are also cutting unnecessary costs due to the worsening economic situation.
Still, revenues increased from $7.3 billion to $7.97 billion compared to the same period last year. This happened as a result of the increase in the price of monthly flat rates in some countries. Stranger Things 4 has reached the second place in the list of the most watched shows, the Korean Squid Game is still in the first place. It will have a second series.
In the coming months, titles such as The Gray Man or the next continuation of the Koruna series should keep the audience’s attention.
Netflix representatives also provided additional information on the upcoming cheaper tariff with advertisements. Due to licensing conditions for some movies and shows, the offer in this plan will be poorer than in the full plans. “We can put most of what people look forward to here. We will delete some additional content, but obviously not all of it, so it shouldn’t be a major obstacle,” said Netflix CEO Ted Sarandos. The tariff will appear in the menu at the beginning of 2023, and so far only in a handful of markets where significant investments are made in online advertising.
The company described the first experiences with special surcharges for users who share their passwords outside the home as “encouraging”. Netflix is testing new measures in Latin American countries to capture these black souls and convert them into regular subscribers. For example, the “Add Another Household” feature should cost $2.99 per month in the United States.
In parallel with the financial results, Netflix announced that it has purchased the Australian studio Animal Logic. It wants to improve its position in the field of animated production. Australian animators created films such as Happy Feet or The Lego Story.
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