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.
Get the latest tech news, telecom insights, and product launches wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.