So much for ‘Netflix and Chill’ as the latest info reveals that Netflix lost 1.3 million U.S. and Canadian customers during the second quarter of 2022. Netflix had 74.58 million memberships in the first quarter of 2022 and dropped down to 73.28 million during the second quarter.
Here’s the video about just one quarter of losses:
The total number of Netflix users worldwide decreased by 970,000 despite several other regions seeing subscription growth. Although it lost more customers than 200,000 in Q1 2022, this represents a victory for Netflix because it had anticipated losing up to 2 million people.
The primary cause of this loss appears to be Netflix’s frequent price increases. In January, Netflix raised the prices of all of its plans. Standard HD plans went up from $13.99 to $15.49, 4K plans went up from $17.99 to $19.99, and the entry-level standard definition plan went up from $8.99 to $9.99.
Despite the drop in U.S. subscribers, revenue increased by 9% year over year, which Netflix claims is due directly to a rise in the average revenue per subscriber. Netflix anticipates adding one million new customers in the third quarter of 2022, thanks to Mac Rumors who grabbed data from this report.
In order to maintain its revenue growth, Netflix claims it is concentrating on developing monetization. The business attributes its subscriber loss to the adoption of connected TV, account sharing, and competition.
Early in 2023, a more affordable, ad-supported tier is planned, and it may entice some Netflix users who have given up because of the service’s escalating expenses. The 100 million+ households that now enjoy, but do not directly pay for, Netflix are being worked on, according to Netflix.
In Latin America, Netflix is now experimenting with a $3 cost to add a second household to a Netflix plan.
This story syndicated with licensed permission from Frank who writes about entertainment news articles. Follow Frank on Facebook