Economy: Netflix curbs its loss of subscribers in the second quarter

The streaming platform lost subscribers in 2022. © REUTERS - DADO RUVIC

Text by: RFI Follow

2 mins

Still bad results for Netflix but the streaming giant hopes for a rebound this summer: in the second quarter, the platform again lost subscribers but less than expected, giving hope to investors who feared a free fall after the losses announced in the first quarter .  

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This is the beginning of the end of the haemorrhage after

a disaster year

.

This is the message that Netflix wants to send to the markets by publishing its results for the second quarter: bad certainly, but less than expected, reports 

our correspondent in Los Angeles

,

David Thompson.

The group expected to lose two million subscribers between March and June.

The fall ultimately amounts to just under a million.

"

It's not easy to talk about success when you've lost a million 

" customers, acknowledged Reed Hastings, co-founder of Netflix.

“ 

But we are well prepared for next year

,” he added during a conference call.

Netflix still has more than 220 million subscribers and expects to regain a million during the summer thanks in particular to the success of certain series such as season 4 of Stranger Things, which is breaking popularity records.

The company is also counting on the imminent release of "

The Gray Man

", a film by the Russo brothers, the directors of " 

Avengers: Endgame

", which could turn into a franchise if it wins over the public.

The platform also plans new subscription formulas, cheaper but with advertising, after years of refusing this less prestigious solution. 

The Californian group published a turnover of 7.97 billion dollars for the period from April to June, a result lower than expectations which it put in particular on the account of an unfavorable exchange rate. 

On the other hand, it made 1.44 billion in net profit, better than expected.

Sign that the announcement reassured, its action had climbed 8% at the close of the New York Stock Exchange.

Correction effect and war in Ukraine

What to breathe after the results of the first quarter and

the loss of 200,000 registered mostly Americans

.

A first in more than ten years which had caused the stock to fall by 25% and led to the dismissal of 400 employees.

These performances "

show that Netflix is ​​not likely to put the key under the door for the moment

", reacted the independent analyst Rob Enderle.

They have saved time, which they need to stop the bleeding

” of subscribers, he continued.

After years of rapid conquest, and after taking full advantage of the pandemic and health restrictions, Netflix is ​​undergoing a correction effect, amplified by the competition that has saturated the market in recent years.

Added to the loss of subscribers is an unfavorable economic context, from the war in Ukraine to inflation and the strong dollar.

 "

Netflix remains the leader in video streaming but if it doesn't find more franchises that resonate widely, it will end up struggling to stay ahead

," commented eMarketer analyst Ross Benes.

(With AFP)

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