Netflix lost nearly 1 million subscribers last quarter
Netflix warned it might lose more subscribers in the second quarter of this year than it did in the first, and that prediction has come true — though it wasn’t as bad as feared. The streaming service said it lost nearly 1 million subscribers (970,000 to be exact) in Q2. That’s far more than the 200,000-member decline from Q1, but not as bleak as the 2 million Netflix was prepared to part with.
The company attributed the slightly rosier outcome to “better-than-expected” subscriber growth, particularly in areas like Asia-Pacific. The company still turned a $1.44 billion net profit despite the shrinking customer base and unfavorable foreign exchange values for the US dollar. Unfriendly exchange rates are a particularly difficult problem when nearly 60 percent of revenue comes from outside the country, Netflix said.
The media giant is expecting a turnaround for the third quarter, if a slow one. It’s now predicting that it will add a net 1 million subscribers. While that’s a far cry from the 4.4 million Netflix added a year earlier, it’s a decided improvement over the past six months. The strong start for Stranger Things 4 could help — the nostalgic show is now Netflix’s …read more
