Netflix loses almost a million subscribers

Netflix Inc. said on Tuesday it lost 970,000 subscribers from April to June, avoiding the company’s worst-case scenario, but offered a forecast below Wall Street’s expectations for the current quarter.

The company plans to launch an ad-supported service next year and has warned that the strong dollar is also hurting revenue from subscribers outside the United States.

Netflix had warned in April that it expected to lose 2 million customers in the current quarter, shocking Wall Street and raising questions about its long-term growth prospects.

While second-quarter defections weren’t as steep as expected, Netflix estimated its new customer additions between July and September at 1 million. Wall Street was expecting 1.84 million, according to analysts polled by Refinitiv.

After years of tremendous growth, Netflix’s fortunes have reversed as competitors such as Walt Disney Co, Warner Bros Discovery and Apple Inc invest heavily in their own streaming services. streaming.

In a letter to shareholders, the company said it had taken a closer look at the slowdown, which it attributed to a number of factors, including shared passwords, competition and a weak economy.

Netflix is ​​still the service streaming dominant worldwide, with almost 221 million subscribers on the planet.

In April, the company said it was addressing customer churn in part by planning a crackdown on password sharing and launching a cheaper ad-supported subscription.

Last week, Netflix announced that Microsoft Corp was its sales and technology partner for its ad-supported service.

The company is also working to build on the popularity of the “Stranger Things” series and try to turn some of its biggest hits into franchises.

From April to June, earnings per share were $3.20.

Netflix said the dollar’s strength weighed on revenue, which grew 9%. Revenues would have increased 13% without the impact of foreign exchange, the company said.

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