Netflix suffers from subscriber loss.
Netflix is looking for ways to compensate for the loss of users. PDO
Netflix says it lost around 970,000 subscribers in the last quarter, Reuters reports. However, the company expected to see a much larger user loss than this. Netflix previously predicted that it could have lost around two million users in April-July.
This is the biggest subscriber drop in Netflix history. In the second quarter of the year, Netflix lost 1.3 million customers in the United States and Canada, and 770,000 customers in Europe, the Middle East and Africa. However, the user loss was offset by the growth of 1.1 million subscribers in Asia and the Pacific region.
Addressed to shareholders in his letter Netflix singled out the fourth season of Stranger Things as a positive aspect, which was “a hit by all measures”. In its first month, the fourth season of Stranger Things generated 1.3 billion viewing hours.
The new season of Stranger Things also got subscribers into previous seasons. The viewing figures for seasons 1–3 increased fivefold during the fourth season’s release month compared to the previous month.
Due to the loss of subscribers, Netflix has had to re-plan its operations. The company has laid off 450 employees and announced that it will introduce a new subscription that includes ads, but is more affordable. In addition, the company tries to prevent the use of joint accounts and tests orders from several economies around the world.