Netflix, in its statement on its second quarter balance sheet, stated that it lost close to one million subscribers. However, the platform emphasized that this figure is lower than expected and noted that it is hopeful for the future.
According to the data released by the company on Tuesday, the number of subscribers leaving the platform in the second quarter was 970 thousand.
Investors, on the other hand, expected subscriber loss to be more than double that number.
This number was 200 thousand people in the first quarter; Thus, the company announced that it lost subscribers for the first time in 10 years.
The role of the Stranger Things series is great in Netflix’s expected less loss of audience.
The company also announced that they expect one million more subscribers to come in the current quarter.
This is a lower number than investors expected; however, it created a positive perception as it will replace the subscribers who left in the previous quarter.
On the other hand, the company’s revenue grew by 8.6 percent in the second quarter, approaching $ 8 billion.
The fact that Netflix’s balance sheet data created a positive impression for the future of the company enabled the company’s share to increase by 7 percent in purchases and sales made outside of trading hours.
However, the company’s shares are still 70 percent lower than at the beginning of the year.
Reed Hastings, the head of the company, said in a statement that they were excited with the ‘less bad’ results and expressed his hope by saying, “Looking ahead, we see that digital platforms are everywhere, everyone is coming.”
Some serials are not broadcast at once.
Despite the increasing competition and the decline in the number of viewers, Netflix seems confident that it will maintain its top position as the most watched digital platform in the world.
The company stated that it broke a record with 7.7 percent of television viewing in the United States in June.
Netflix is responding to falling subscribers by cutting costs, raising subscription prices, and developing subscription models with ads.
The platform was previously positioned as an alternative to cable television as an ad-free model; however, with the decrease in the number of subscribers, it had to develop the advertising model.
Signed with Microsoft to develop the advertising model.
In addition, it broke the policy of broadcasting some series in one go and started to put some productions on the platform in groups.
The last seasons of Stranger Things and Ozark were broadcast as two separate groups at different times.
Disney+ is also known for broadcasting episodes of series every week, not all at once.
The total number of subscribers of Netflix in the last case is 220 million.