Netflix loses subscribers again, but share shoots up because decrease is less bad than feared | Abroad

In April, the company announced that it had fewer users in the first quarter of this year for the first time since 2011. For the second quarter, Netflix then indicated a loss of another 2 million subscribers.

The largest loss occurred in the North America region, where a total of 1.3 million people canceled their subscription last quarter. In Europe, Middle East and Africa (EMEA), 770,000 Netflix subscriptions were discontinued. In contrast, Latin America and Asia/Pacific (APAC) added subscribers: 10,000 and 1.08 million, respectively.

Netflix currently has 220.7 million subscribers worldwide. The company believes that the bottom has been reached for the time being. In the summer period from July to September, the streaming service expects to gain one million subscribers again.

According to experts, the decrease in the number of subscribers is partly due to the price increases of the platform. Some people would find their Netflix subscription too expensive as a result. Netflix faces stiff competition. Web retailer Amazon and entertainment giant Walt Disney have been working on their own streaming services for some time now.

By making new seasons of popular series, Netflix hopes to tempt people to remain a customer for longer or to come back to the platform. The fact that the decline in the number of subscribers was limited last quarter is therefore mainly due to the new season of ‘Stranger Things’, which many people wanted to see.

Netflix has even more ideas to find the way up again. For example, the company plans to come up with a new and cheaper subscription where viewers will see advertisements before, between and after films and series. On Tuesday it was also announced that the company is acquiring the Australian animation studio Animal Logic. That company is known for its work on ‘The Lego Movie’ and will probably start working on new Netflix productions in the near future.

Despite declining user numbers, year-over-year revenue increased by 9 percent to just under $8 billion. Profit came in at more than $1.4 billion, compared to just under $1.4 billion in the same quarter last year.

Investors seem very excited about the numbers. Netflix shares rose 12 percent in after-hours trading on Wall Street.

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