Netflix 2nd Quarter Earnings Review

Netflix (NFLX) has released its second quarter earnings report. The results show a better performance than those reported during the first quarter of 2022.
 
The streaming service lost around 970 000 paid subscribers during the second quarter however the company had anticipated a loss of around 2 million customers during this period. The streaming giant thinks that the cause for them loosing so many customers is due to their pricing and not content. With the launch of Disney+ among other competitors the landscape has become very saturated, and Netflix finds itself in an ever-challenging environment.
 
Despite Netflix’s decline, use of other major subscriptions streaming services has been growing among mobile users with around 10% increase of all age groups. Netflix believes that their streaming service is not as accessible to all which is causing these unfavourable results. The new partnership with Microsoft will allow the subscription company to begin recovering its losses and to better align its pricing model as a recorded 19% increase in the same period since 2019 shows great potential for ad-based subscriptions.
 
The loss of subscribers has stabilised for now, but Netflix will need to make strong adjustments to its operating model if they want to be competitive in an ever changing landscape.