Netflix Lost 1.3 Million U.S. and Canadian Subscribers in Q2 2022

[MacRumors]

Netflix in the second quarter of 2022 lost 1.3 million subscribers in the United States and Canada, according to new data shared today during the company's earnings call. Netflix had 73.28 million paid memberships during the quarter, down from 74.58 million in the first quarter of 2022.

With subscriber additions in some other areas, Netflix in total dropped 970,000 subscribers worldwide. That's more than the 200,000 customers that it lost in Q1 2022, but it is ultimately a win because Netflix was expecting to lose as many as 2 million subscribers.

Netflix has been raising its prices, which has resulted in some customers turning away from the service. In January, Netflix increased the prices for all of its plans. The basic standard definition plan went from $8.99 to $9.99, the Standard HD plan went from $13.99 to $15.49, and the 4K plan went from $17.99 to $19.99.

Despite the U.S. subscriber loss, revenue was up nine percent year over year, which Netflix says is the direct result of an increase in average revenue per membership. In the third quarter of 2022, Netflix is expecting to add one million subscribers.

Netflix blames its subscriber loss on connected TV adoption, account sharing, and competition, and to continue to improve revenue growth, the company says that it is focusing on evolving monetization.

A lower-priced ad-supported tier is in the works and is set to launch in early 2023, and the lower-cost plan could draw in some of the subscribers that have abandoned Netflix because of the rising costs. Netflix says that it is also working to monetize the 100 million+ households that are "currently enjoying, but not directly paying for, Netflix."

The company is aiming to find an "easy-to-use paid sharing offering" that can be rolled out in 2023. Right now, Netflix is experimenting with a $3 fee to add an additional household to a Netflix plan in Latin America.

Article Link: Netflix Lost 1.3 Million U.S. and Canadian Subscribers in Q2 2022

 

[Think|Different]

It's because they are one of the only streaming holdouts that want to charge for 4K...in 2022.

 

[TheYayAreaLiving 🎗️]

If they keep on charging extra for higher screen resolution. They will continue to lose more subscribers.

 

[BC2009]

I blame their subscriber loss on the constant emails they send out indicating which good shows are leaving Netflix with a list of sub-par Netflix-produced shows replacing them. Plain and simple, all the good studios are putting their content exclusively on their own streaming services and content is expensive to produce. Stranger Things is the best original content Netflix has going for them and while awesome, you can literally get Netflix for one month per year and binge that.

 

[Macative]

They raised prices, and lost some people, but ultimately made more money because not enough people canceled.

That's exceptionally disappointing as a former customer.

 

[ponzicoinbro]

They over estimated how many they would lose.

Anyway I have all the streaming services and the best is MUBI. Anyone who disagrees has no taste And dresses badly.

 

[contacos]

HAHAHA

I wish them nothing but the worst. Blaming users for their fading business model is coming off as very condescending

 

[TheYayAreaLiving 🎗️]

Netflix blames its subscriber loss on connected TV adoption, account sharing, and competition, and to continue to improve revenue growth, the company says that it is focusing on evolving monetization.

Netflix really needs to stop blaming the consumers and they should focus on the actual "High Quality/Level Content" they should be making.

 

[SnakeEater1993]

Many more will follow now that stranger things aired it's last(for this season) episodes.

 

[tbobmccoy]

I'm planning on leaving soon, too. Their loss of content, customer unfriendly behaviors, and locking of highest quality streams to the highest paid plans irritate me.

 

[cb3]

Why I'm thinking of leaving Netflix: Finding their content less and less interesting. Price is going up.

 

[icanhazmac]

Will be leaving them soon and adding them to the list of services that I will "store up shows on" and then resubscribe for a month or two binge watching all the content and then canceling.

 

[seek3r]

I bounce between 2 locations and travel for work, as does my wife. We do also share the account with my in laws but they wouldnt pay for it without since they only use it occasionally. If they make this too difficult to work with our current workflows we'll probably drop the service completely, despite liking enough of their newer content to justify keeping it around right now. They're blaming the wrong factors here, and I think it's going to drive them into the ground if they're not careful.

The main problem honestly is that they've been losing other network content as those services come online and they've been commissioning a lot of low budget schlock to replace that en masse. While I'm sure there are commenters here who will scream about "wokeness" as a problem that definitely aint it, the majority of folks paying for streaming services do, in fact, want more diversity, more LGBT+ and women led stories, etc. What the problem is is that so much of what they're producing is just super low quality. It's like they looked at early 90s daytime network TV and decided that was the model to emulate for some reason. They need less shows and movies and have the ones they fund get funded better.

They also need to stop canceling shows at the drop of a hat, I keep getting burned and that's getting annoying (one reason why I'm happy they have renewed some shows, like The Dragon Prince, for multiple future seasons, it means you don't have to worry about them canceling it right as you get invested, but that's really really rare).

 

[dannyyankou]

They're out of their mind for expecting people to pay $20/month for 4K.

 

[tigres]

if it were not for Tmobile covering most fees, I'd be long gone too.

 

[Remy149]

It's because they are one of the only streaming holdouts that want to charge for 4K...in 2022.

It’s ridiculous at this point 4k is the default

 

[Attirex]

Netflix should stop being coy with softcore stuff like Bridgerton and countless other "naughty" shows and just go full porn.

 

[kasei]

Clearly these guys are in denial about their outdated pricing model. Not going back no matter how many times they send me a reminder email. $20/month for 4K - they are crazy!

 

[visualseed]

Netflix really needs to stop blaming the consumers and they should focus on the actual "High Quality/Level Content" they should be making.

Exactly. I left because of the content, first. The price increases, second. And the prospect of being charged even more because my wife and daughter spend months out of the year in another country while I work, third. If they fixed the content issue and stop canceling good shows abruptly without conclusion to the story arcs (like Mind Hunter) and filling the lineup with cheap-to-produce garbage, I would not worry too much about the other issues.

 

[vipergts2207]

the company says that it is focusing on evolving monetization.

I.e., focusing on more ways to bilk their customers.

 

[contacos]

They're out of their mind for expecting people to pay $20/month for 4K.

Right? I have never felt less bad paying them in Mexican pesos money for my subscription

 

[nutmac]

Netflix blames its subscriber loss on connected TV adoption, account sharing, and competition, and to continue to improve revenue growth, the company says that it is focusing on evolving monetization.

I blame Netflix's loss on (1) delivering poor value, (2) cancelling beloved series before it gets a chance to finish their stories, (3) lack of quality contents, and (4) poor user experience.

 

[Wiesenlooser]

I think they should raise the prices some more…

 

[B4rbelith]

Netflix didn't blame password sharing when they were experiencing exponential growth. We all know why they are losing subscribers, but they themselves can't recognise it.
It will be their downfall in the end if they're not careful.

 

[tonyisit]

They raised prices, and lost some people, but ultimately made more money because not enough people canceled.

That's exceptionally disappointing as a former customer.

sorry man , Netflix is still one of the better services out there, they are not going to crash and burn like it sounds you want them to.