The world's largest streamer lost 970,000 subscribers in the three months ending June 30, the company announced Tuesday in its second-quarter earnings report, ahead of its dire prediction in April of losing 2 million.
Netflix reported Tuesday that it lost 970,000 subscribers in the second quarter of 2022 — a number far lower than its own forecasts, which had projected that the streaming giant would lose two million subscribers.
The company’s financial results, released after Tuesday’s market close, were widely anticipated. Though the loss of 970,000 paying users might typically not pass for good news, it’s a veritable win compared with the 2 million the company had expected for the three-month period that ended June 30. That sent investors rushing in, powering the stock up nearly 8 percent in after-hours trading.
In response to its financial woes, Netflix laid off hundreds of employees, moved to crack down on password sharing between households, and confirmed that it would begin testing an ad-supported, lower-priced subscription tier after years of resisting the move. Now, amid rising concerns about the business of streaming, Netflix said in its letter to shareholders that it’s focused on a number of efforts aimed at increasing subscriber totals and generating new revenue.