Netflix lost almost a million subscribers (970,000 accounts) in the second quarter of the year, during which time it got net profit of $1,441 millionthe company disclosed in its latest earnings report released on Tuesday.
Despite this loss of customers, the company climbs more than 3% on Wall Streetas the data improves the company’s latest forecast, which in its March accounts predicted the loss of up to two million users after losing, for the first time in more than a decade, 200,000 customers in the world at the beginning of this year.
During those three months, during which its shares fell and it laid off more than 300 employees, netflix managed to contain further bleeding from the appearance of competitors such as Disney and Apple in the field of streaming.
The debacle was such that its results were eagerly awaited in the entertainment industry, and now they seem to have inflated their investors with optimism, since, immediately after the report’s release, its shares rose more than 10% in subsequent electronic trading when New York parks close.
In addition, the company based in Los Gatos (California, USA) has aroused this optimism by predicting that for the next quarter it will recover this million lost users.
“Our challenge and our opportunity is to accelerate our revenue and attract new customers by continuing to improve our product, our content and our marketing as we have done for the past 25 years,” he said. he said in a letter to his investors. However, the data reflects a stagnant economic model.
While its predictions say it will recover the million users lost through growth in the next few semesters, these are a far cry from the 4 million it added in the same period last year, the same letter admits. If the forecast holds, Netflix would enter the end of the year with exactly the same number of active accounts as at the start of 2022.
On the other hand, its total turnover increased by 8.6%, a figure affected by the new interest rates and the evolution of the value of the dollar since, ignoring this situation, the company places the increase at 13 %.
It is growing in Asia and stagnating in Europe and Latin America
By territory, the Asia-Pacific region is the one that pleases the television giant the most, which already equals Latin America in terms of business volume by adding one million additional customers.
However, its two major markets, Europe and North America, concentrate subscriber losses, particularly pronounced in the United States and Canada.
Despite the stagnation, Netflix was proud of its leadership position in the industry and boasted of its ability to influence global popular culture with formats such as “Stranger Things”, which drove social media mentions and brought Metallica and Kate Bush songs back to the charts just for appearing on the show.
With 220 million customers, netflix It is the leading streaming platform in the world, although it is difficult to make a comparison.
Amazon, for example, only acknowledges that 200 million customers watch videos on its e-commerce platform. And Disney adds 205 million subscribers between its various platforms: Disney+, Hulu, Star and ESPN+. Apple, for its part, has more than 40 million Apple TV+ users.