Netflix has been expecting a huge decline in subscribers for Q2 2022 amid the growing number of users sharing passwords instead of paying for an account. The streaming service has just lost 970,000 memberships, and while it is not a small number at all, it’s much better than the projected 2 million loss.
Despite losing 1 million customers, Netflix still managed to raise its revenue by 8.6% compared to last year, but the growth is slower than ever compared to the previous quarters.
The company says this has to do with an increase in average paid memberships and average revenue per membership. The revenue figure would have been even greater, but Netflix lost $339 million due to foreign currency impact.
The company’s share price also increased by 7% in after-hours trading since the actual results were better than expected. As for Q3 2022, Netflix expects an increase in subscribers by 1 million compared to Q3 2021’s 4.4 million.
The streaming giant has also confirmed the cheaper ad-supported tier that has been in the rumors for ages. It is expected to launch in early 2023 in markets where people tend to spend more. Once Netflix learns how the plan is working, the cheaper tier will expand to other regions accordingly.
The company hopes that it will bring more subscribers to the table.
In related news, Netflix is also testing a fee for password sharing in select countries. It is only limited to 5 Latin American countries for now and the fee is as little as $2 in some of the regions.
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This was expected. It can all be traced back to the TV show Suits and Harvard-educated lawyers. A reference to the Pakistani interior ministry and legal amendments. Their main aim was to stop the so-called South Asian and Central/West Asian market (Pakistan) from consuming their content. It led to questions amongst the Pakistani audience about why they don’t favor Harvard-educated lawyers for the interior ministry, over local nobodies, who they placed on their own no-fly lists, themselves? Primarily because Suits was very popular in Pakistan at one point and in fact, the equivalent of Pakistan in the region, Egypt got their own equivalent of the show, very recently, as well. Let’s hope we get one too because Egyptians got the Arab Spring after our Lawyers’ movement and we got Reza Baqir from them, so why not this? They were willing to take down Netflix, part of the FANG stocks only to justify handling the Railways saboteur, who turned interior minister. Now, they’ve fudged numbers to increase the users but earlier, the revenue had been going down, as well. The said vermin must be worth more than Netflix for these freaks.