Streaming giant Netflix lost nearly half a million subscribers in its second financial quarter despite adding more subscribers than initially predicted. As one of the first streaming networks to truly make an impression on the global market, Netflix has long since been looked to as a leader in innovating a technology that has revolutionized the manner in which people watch films, television and soon enough, video games. But over the course of the past several years, a wide range of newly formed streaming services have threatened to challenge Netflix’s dominance.
While the Covid-19 pandemic has caused an untold degree of damage to the finances of numerous businesses the world over, Netflix found considerable success throughout the lockdowns that still continue to occur in various nations. At the same time, however, the likes of Disney and Amazon have made considerable headway within the highly competitive market, with Chinese streaming service iQiyi succeeding in its own right within China. It’s difficult to say at present how much longer Netflix will continue to be the leader in the streaming wars, but it is worth pointing out that the service’s subscription numbers have continued to rise – in some cases even surpassing what was initially predicted during certain quarters.
But while Netflix continues to enjoy the benefits of being a global leader, the brand’s most recent financial quarter has offered a look at just how many subscribers decided they’d had enough. As per Markets Insider, the latest look at Netflix’s gains and losses in the second financial quarter shows that the streaming giant lost 0.43 million subscribers in the United States and Canada. In a letter to investors, Netflix dismissed the losses as “some lumpiness” due to Covid, before providing assurances that this was being worked through. Read Netflix's statement below:
We finished the quarter with over 209 million paid memberships, slightly ahead of our forecast. COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through.
Even with the setback of losing half a million subscribers, Netflix is clearly undaunted. The service’s original subscriber estimates were actually surpassed in the second quarter, adding 1.54 million subscribers after previously estimating 1.00 million new subscribers for the financial period. Never one to rest on its laurels, Netflix is forecasting another 3.50 million new subscribers in its third quarter. This might seem like a lofty goal to some, but with production now resuming on a wide variety of films thanks to the prevalence of Covid vaccines, there’s every reason to believe that Netflix's subscriber numbers will soar.
Exactly why half a million Netflix subscribers decided that it was time to move on from the streaming giant is hard to say. Certainly there’s the possibility that finances have been tight for many throughout the Covid-19 pandemic and a subscription to Netflix is considered an unaffordable luxury for some. There’s also the issue of content, with some Netflix regions offering far fewer interesting titles than others. And then there’s the Netflix habit (again, in some regions) of placing more emphasis on the number of titles they offer rather than the quality of said titles. All in all, it makes for both a challenging and rewarding time for streaming services.
Source: Markets Insider