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Netflix Lost Close to One Million Subscribers in Quarter Two

Despite the losses for a second straight period, the company expects gains in quarter three

by Cullen McCue
July 23, 2022
in Culture, Economy, News
Netflix Asks Federal Judge to Halt ‘Cuties’ Child Porn Indictment

Last Updated on July 23, 2022

In the second quarter of 2022, streaming giant Netflix lost close to one million subscribers. The company lost 200,000 in the first quarter, and while they continue to lose subscribers, the company is treating the latest report as good news.

Netflix had signaled that it expected more subscriber losses in their first quarter financials this past April.

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The company has taken steps to crack down on password sharing, which has been commonplace since streaming services initially gained popularity. Netflix has also continuously raised its prices, leading to a decline in subscribers as Americans have reduced their entertainment budgets over recession fears.

All told, Netflix lost 970,000 subscribers in the second quarter of 2022. That number was up from 220,000 in the first quarter, however, leaving the streaming giant with roughly 220 million subscribers as of June 30.

The company expects the bleeding to stop in the ongoing third quarter, where company internals project a gain of one million subscribers.

As part of the company’s effort to cut down on password sharing, Netflix will be rolling out a cheaper version that will feature ads. Similar business models are utilized by competitors, such as Hulu.

Company executives believe that a number of previously unsubscribed customers will return with a lower price point. Internal projections also call for a number of new subscribers after current Netflix viewers lose access as a result of a crackdown on password sharing.

As of the April, Netflix estimated its paying subscribers share the service with an additional 100 million households, more than 30 million of which come from the U.S. and Canada.

The shoehorning of leftist values into the bulk of its programming has also cut into the company’s subscriber count. Netflix previously held an exclusive content deal with Barrack and Michelle Obama, though they did not opt to renew the agreement.

In 2019, the French film “Cuties” sparked a massive backlash against the streaming giant. The film was heavily criticized for its sexualized portrayals of small children, which led to massive boycotts.

RELATED: Netflix Lays Off Dozens of Employees Involved With ‘BIPOC’ & ‘LGBTQ+’ Projects 

Tags: EconomyNetflix
Cullen McCue

Cullen McCue

Philadelphia-based reporter who also covers MMA. Founder of Reality Circuit. Twitter and Gab: @CullenMcCue

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