The famous broadcasting platform, Netflix, revealed the loss of nearly one million subscribers in the last three months, and the number of users who left the platform was 970,000 accounts.
This figure, which approaches a million, the company lost in the second quarter of this year, which is nearly five times the loss of Netflix in the first quarter of the same year.
Referring to the numbers, we find that the American broadcasting platform had lost 200,000 users in the first quarter of 2020, and now it has lost 970,000 users and continues to lose more.
On the other hand, the source that Netflix was expecting to lose more users in the second quarter of the year than the first quarter, and that this figure, which is close to a million, is not as bad as the company had expected.
The company’s consolation was a slightly more optimistic result to “better than expected” subscriber growth, particularly in regions such as Asia Pacific.
Netflix profits after losing one million users
Some might expect that losing such a huge number may cause huge losses to the company, but the company still achieves a net profit of $1.44 billion despite the shrinking customer base and the varying dollar exchange values in different countries.
Netflix said improper exchange rates are a particularly difficult problem when nearly 60 percent of revenue comes from outside the United States.
The company expects that the third quarter of the year will be better than the first half, with the hope of obtaining one million new subscribers in parallel with the presentation of the fourth season of its famous series “Stranger Things”, which tops the shows on the platform with more than 1.3 billion watch hours.
Alternative plans to increase profits
The crisis of losing subscribers and declining profits is not a recent crisis for the American company, and indeed Netflix has plans and solutions to overcome any potential losses and achieve more profits.
The latest of these plans announced by the company in the past weeks is to add ads to the platform, by offering a cheaper price plan with ads.
This new addition will be launched at the beginning of 2023, which will bring more users to the platform.
Also, the company plans to prevent account sharing and experiment with charging additional fees if the account is opened from distant regions.