Netflix lost almost a million subscribers over the past three months, the company has revealed, although this was not as many as it had feared - having forecasted a drop of two million subscribers previously.
In Netflix's latest financial results, the streaming giant revealed that despite airing new seasons of front-runner Stranger Things and other popular series such as The Umbrella Academy.
In the UK, the cost of living crisis is one of the biggest issues currently faced by households, and streaming services are feeling the impact of it. The BBC reported that many people are choosing to cancel their subscriptions in order to compensate for increasing bills and prices. Netflix is likely one of the companies affected by this, with 300,000 of the total 970,000 subscribers lost residing in the EMEA region.
Despite this, the company's revenue growth is still in the positive at 8.6 percent, though analysts are predicting growth will stall over the coming year. After the shareholder letter was published online, stocks in Netflix went up by eight percent, which in turn caused shares in other media companies to gain a small increase too.
Lot of discussion about Netflix losing Subscribers last quarter but some needed context— Benji-Sales (@BenjiSales) July 19, 2022
It was actually better than expected performance and the stock is up 8% after hours. They lost 970k but analyst expectations were 1.5m -2m. Company still facing challenges but positive sign pic.twitter.com/iuI3Ph9ppE
Netflix has projected a gain of 1m subscriptions within the next quarter, and have highlighted how games will build into their strategy. As well as its increasing number of video game adaptations, Netflix states they are "building a solid pipeline of new games that will launch over the next several years" in addition to their mobile game output. The streaming giant has acquired three game studios so far, though we are yet to hear about what new projects they have in development.