Latest NewsNetflix Lost 970,000 Subscribers

Netflix Lost 970,000 Subscribers

Netflix Inc said on Tuesday it lost 970,000 subscribers from April through June, prevention the worst-case scenario projected by the company; but offered an estimate below Wall Street prospects for the current quarter. It plans to launch an ad-supported stage next year, and it warned that the strong dollar was also hitting revenue booked from subscribers abroad.

Netflix had warned in April that it predictable to lose 2 million customers in the current quarter, shocking Wall Street and floating questions about its long-term growth prospects. Although defections for the second quarter were not as steep as expected, Netflix assessed its new customer additions for July through September would amount to 1 million. Wall Street analysts were expecting 1.84 million, rendering to analysts polled by Refinitiv.

After years of red-hot growth, Netflix’s fortunes have upturned as rivals containing Walt Disney Co, Warner Bros Discovery and Apple Inc invest profoundly in their own streaming services.

In a letter to shareholders, the company said it had additional examined the slowdown, which it had attributed to a diversity of factors comprising password sharing, competition and a sluggish economy. Netflix remains the dominant streaming service around the world with nearly 221 million global paid subscribers.

In April, the company said it was addressing customer defections in part by planning a crackdown on password-sharing and launching the less-expensive tier with advertising. Last week, Netflix proclaimed Microsoft Corp as its technology and sales partner for the ad-supported offering. Netflix said the strong U.S. dollar hit revenue, which grew 9%. Revenue would have amplified by 13% without the foreign exchange impact, the company said.

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