Netflix announced that its service has left more than 970,000 subscribers, the highest number of subscribers in the last three months. At first glance, it may seem like bad news, but it’s far from it. Because the shareholders forecasted a loss of 2 million subscribers in April. So everyone expected the situation to be worse for the shareholders and the company. Netflix stock jumped after posting higher-than-expected earnings. Netflix stock rose 6.8 percent to $215.26 in early over-the-counter trading.
Netflix said 220.67 million subscribers remain on the service after a drop in subscribers, according to its second-quarter report released Tuesday. However, despite that, Netflix still leads in popularity and subscriber numbers on streaming services.
How will Netflix deal with this?
Years of steadily growing Netflix subscriber numbers have prompted almost every major Hollywood media company to pour billions of dollars into their own streaming operations. That’s why there are so many other streaming services today, such as Paramount Plus, Apple TV Plus, HBO Max, Peacock, and many others.
With so many users leaving the site, Netflix’s reputation has been a bit tarnished. At the same time, feeling the pressure of competition, Netflix is creating new features on the service that will help earn and retain subscribers.
Netflix has announced the introduction in the near future the possibility of launching cheaper subscriptions, which will be supported by advertising. The company announced last week that it would work with Microsoft to add an ad-supported plan for users. It’s actually pretty hard to imagine exactly how Netflix will create these terms. For all these years Netflix has been building a different model of delivering content to subscribers.
Netflix said it also plans to introduce plans in 2023 where users can pay to share accounts with others outside their family. This feature isn’t new to many people, as testing of this feature has been going on in Latin America for a long time. Netflix first piloted a scheme that charged for adding additional members as official ‘sub-accounts.
However, at the same time, it was just recently announced that the system would be changed and the new method would have the user’s primary residence as the ‘home’ for that account. Then if you watch video content on Netflix from another location, you will need to set up and pay for additional ‘homes’.
Since Netflix is a company that has been growing rapidly and has been creating a quality products for its subscribers for a long time. It’s worth expecting that in the near future Netflix will be releasing a new feature that can succeed and attract more customers.
Despite the fact that Netflix has lost a colo million subscribers, Netflix’s revenue hasn’t declined. Overall, Netflix posted earnings of $1.44 billion, or $3.20 per share, in the latest period, compared with $1.35 billion, or $2.97 per share, a year earlier. Revenue rose 8.6% to $7.97 billion.
