Netflix lost about 1 million subscribers last quarter-- a much better than anticipated outcome for the streaming giant, which likewise forecast 1 million net brand-new customers for the approaching quarter.
The business had forecasted a loss of 2 million subscribers. Earlier this year, the 25-year-old business reported its first quarterly decrease in customers-- about 200,000-- in more than a decade.
The company's shares were up as much as 8% in after-hours trading. Netflix's share rate has declined 67% this year, though it stays the largest global streaming platform, with more than 200 million customers worldwide.
In its quarterly letter to investors, Netflix said it was concerned about the speed at which its incomes would grow going forward. The business reported around $8 billion in quarterly incomes Tuesday, a marginal enhancement over the $7.9 billion it reported in the previous quarter.
" Reaccelerating our revenue growth is a huge challenge," Netflix stated in an SEC filing. "But we've been through hard times before. We've built this company to be versatile and versatile and this will be a great test for us," the declaration checked out. The company re-emphasized its strength in the streaming landscape.
" We're confident and positive about the future," the company said.
Netflix also confirmed it is planning to roll out a lower-cost strategy that would feature ads, though it did not state how much that plan would cost. It stated it would likely start offering the strategy in a handful of markets with large amounts of spending on marketing. The new ad-supported plan will not replace current ad-free memberships.
The streaming space is highly competitive, and is most likely to remain so as HBO Max, among Netflix's close competitors, is set to partner with Discovery+ to include its content library at $14.99 a month without any advertisements. On the other hand, Disney has kept its Disney+, Hulu and ESPN+ package at $13.99 a month.
In the shadow of Netflix's historic loss of subscribers last quarter, HBO and the cable television channel's HBO Max streaming service added 3 million new users.
Still, Netflix has stayed dominant, having reported $1.6 billion in earnings in March. Other streaming platforms like Disney+ and NBCUniversal's Peacock projected losses tied to their particular investments in new content.
Amidst its battle to keep leading the pack in the streaming race, Netflix previously this year revealed plans to rein in password-sharing amongst its users.
Netflix estimates that 100 million homes worldwide are utilizing shared passwords, plus an extra 30 million in North America-- something it stated was making it harder to grow membership and revenues.
On Monday, Netflix stated it was rolling out a new policy in five Latin American nations that would need an additional charge to be spent for each extra home using a Netflix account.
In its profits report Tuesday, Netflix stated it wanted to discover an easy-to-use paid sharing offering that will be presented in 2023.
