Netflix is now losing its subscribers, another bad news for the streaming giant.
For the past few months, the American subscription service provider has been bombarded with various problems, leading to revenue losses.
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This illustration picture shows the US Online Streaming giant Netflix logo displayed on a tablet in Paris on February 18, 2019.
Not, Netflix recorded its largest quarterly loss, revealing that the tech giant lost around 970,000 subscribers.
Previously, the streaming provider said that more than two million subscribers are expected to leave the company in the second quarter of 2022.
Although the unsubscribed users didn't reach two million, it is still a big deal since it is the largest revenue loss recorded by Netflix, as reported by TechCrunch.
Why Netflix Loses Subscribers?
This 2022, Netflix's shares are experiencing a massive decline of around 70%. This means that the company's market valuation has been reduced to roughly $90 billion.
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The Netflix logo is seen on the Netflix, Inc. building on Sunset Boulevard in Los Angeles, California on October 19, 2021. - Netflix reported billion-dollar profits and booming subscriber growth on October 19.
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On the other hand, the streaming giant also hasn't received fewer Emmy nominations this July. Although it offered more programs, Netflix was only nominated 105 times.
Aside from these two issues, USA Today reported that the rising subscriber losses are also caused by the increased competition Netflix experiences from other streaming competitors.
Adverse global economic circumstances and Netflix's peak number of subscribers (reaching lots of users without any room for new subscribers) are also considered among the reasons why the company is losing its consumers.
"The scale of such ambition is impressive, but it turns out it's unsustainable," said UCLA Professor Tom Nunan, a former network and studio president.
Can Netflix Bounce Back?
Previously, we reported that Netflix is expected to experience growth in the next two quarters of 2022. Spencer Neumann, the company's chief financial officer, recently announced that they will be able to bounce back from their losses in the upcoming months.
He said that the subscribers they lost in the previous months don't mean that Netflix's negative trend will continue.
Netflix's CFO further explained that investors have nothing to worry about since they will regain their earnings losses. Among their plans is launching a new tier that is integrated with advertisements.
The streaming giant clarified that its existing plans will remain ad-free. On the other hand, Netflix is also considering a paid sharing service, that will allow users to watch their shows at lower costs.
If you want to see more plans for Netflix, you can visit this link.
Previously, Netflix and Microsoft decided to collaborate on a new ad-support subscription service.
For more news updates about Netflix and other streaming giants, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
