Netflix sheds roughly 1 million subscribers in the second quarter of 2022, claiming that a strong dollar harmed foreign users' revenues

Netflix sheds roughly 1 million subscribers in the second quarter of 2022, claiming that a strong do ...

Netflix said on Tuesday it lost 970,000 subscribers from April through June, avoiding the worst-case scenario predicted by the company. It plans to expand an ad-supported service next year, and it warned that the strong dollar was also affecting subscriptions overseas.

Netflix said that new customer acquisitions for July through September would be around 1 million, although Wall Street analysts were expecting 1.84 million.

Netflix's fortunes have shifted after years of incessant growth as companies such as Walt Disney, Warner Bros. Discovery, and Apple have invested heavily in their own streaming services.

The company said in a letter to shareholders that it had further examined the slowdown, which it had attributed to a variety of factors, including password sharing, competition, and a sluggish economy.

With over 221 million paid subscribers around the world, Netflix remains the dominant streaming service.

Netflix announced Microsoft Corp as its technology and sales partner for the ad-supported offering in April.

The company is also working to increase the popularity of the Stranger Things series, and is attempting to make some of its most famous successes into franchises.

Earnings-per-share amounted to $3.20 for April and June. (roughly Rs. 260).

Netflix claims that the solid US dollar boosted revenue, which increased by 9%. Without the foreign exchange impact, revenue would have increased by 13%.

2022 Thomson Reuters

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