Netflix loses almost a million subscribers in the last quarter

MADRID, 20 Jul. (EUROPA PRESS) -

Netflix has announced this Tuesday the loss of 970,000 subscribers in the last quarter, a result that reinforces the company's decision to extend the charge to users for sharing accounts, in search of new ways to earn money after years of massive growth. .

"First of all, we have to continue to improve all aspects of Netflix," the company said in a letter to shareholders, adding that its focus would remain on its core service of providing streaming content to subscribers, as has collected 'The New York Times'.

Thus, Netflix has confirmed during its results report that it has lost almost a million subscribers. This is the largest loss of subscribers in the company's history, but it is a far cry from the two million it had initially forecast in its April report.

Also, the content platform has reported that it will ask customers in five Latin American countries to pay an additional 2.92 euros ($2.99) per month to add a "second home" to their accounts.

"This focus on member choice and control influences all aspects of our strategy, creating what we believe to be a significant long-term business advantage," the company said in the letter.

The company intends to launch its cheapest advertising tier in early 2023 in "quite a few markets where ad spending is significant," a development analysts view with caution.

"Beyond additional subscriptions, the ads will also provide an edge to Netflix in the form of a new source of revenue from brands that are eager to reach the platform's audience," said Forrester Vice President Mike Proulx.

On the other hand, it has assured investors that it could recover a million subscribers in the next quarter. Netflix now has around 220.7 million subscribers worldwide.

Netflix has spent the last three months adjusting its business to meet the challenges it expects to face the rest of the year. The company has laid off about 450 employees.