Casablanca – With a loss of 970,000 subscribers in the second quarter of 2022, between April and July, Netflix, the international streaming leader, is facing a hard challenge to maintain its glory, laying off more than 300 of its employees during the three last months.
The subscriber losses disclosed on Tuesday were the largest in the company’s history, with the United States and Canada having the most cancellations in the previous three months, followed by Europe.
With 220 million customers, however, Netflix was able to keep the decrease in members under control, despite the arrival of competitors such as Apple TV, HBO Max, Amazon Prime, and Disney+.
The figures reported in the California-based company’s accounting report are better than the March predictions, which predicted a loss of up to two million members.
Despite the subscriptions decrease, Netflix’s stock soared by more than 10% on the New York Stock Exchange, making a net profit of $1,441 million.
The firm still expressed hope, expecting that it will regain lost consumers in the coming quarter.
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In April 2011, the firm revealed its first subscriber loss, prompting hundreds of job losses and a dramatic plunge in its stock price, but it was able to transcend this difficult stage smoothly.
When the epidemic arrived in 2020 and people were stranded at home with few other alternatives for entertainment, they flocked to big hits on Netflix.
However, when pre-pandemic routines resume, Netflix has struggled to attract new subscriptions and keep existing members loyal, especially as the growing cost of living causes many to cut back.
Amid the dire situation, Reed Hastings and Ted Sarandos, the company’s founders, have pledged to “adjust its cost structure” to meet Netflix’s “current growth rate.”
