Despite the fact that the third quarter ended with a net loss of customers, Netflix expects to add 1 million new users. Recall how Netflix addressed its low revenue growth in the second quarter, blaming it on rivals, account sharing, as well as other factors like the Ukraine crisis and a weakening economy.
The streaming company hasn’t addressed the recent decline in users, but analysts believe it’s due to the diversity of streaming providers available. Netflix’s selection of motion pictures, television shows, and even video games will be constrained as more companies launch their own streaming services, such as HBO Max, Disney+, Hulu, and Amazon Prime Video.
The streaming platform said that its less expensive, ad-supported tier would be accessible in the first half of 2023. This comes after Netflix chose Microsoft as its partner for its ad-supported program. An ad-supported tier is one of the solutions Netflix is taking into consideration to make up for a decline in customers. Advertising is another strategy it uses to keep its current customers. The streaming service, however, wants to preserve its free users, and it attributes some of the early decline in members it experienced in the previous quarter to password sharing.
With a loss of 1.3 million customers, Netflix saw the greatest loss in the US and Canada. The corporation lost 770,000 subscribers in Europe, the Middle East, and Africa while acquiring 1,000 paying subscribers in Latin America.
With 1.08 million additional customers during the quarter, the Asia-Pacific region made the largest contribution to Netflix’s subscriber growth. By charging primary account holders a charge to add users outside of their households, the site has also taken steps to monetize password sharing.
In August 2022, the business will roll out a new cost structure in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras that would let customers add an extra “home” account on top of their main account for $2.99 a month.
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