Netflix announced in April that for the first time in a decade, the platform has lost subscribers. The figures are quite alarming. The company’s second-quarter earnings report shows its global subscriber count had ” fell by 1 million, including a drop of 1.28 million in the United States and Canada between the end of March and the end of June reports The Verge.
As a reminder, Netflix is currently the highest rated subscription streaming service. Moreover, the company indicated that its paid subscribers worldwide are around 220.67 million, including 73.28 million in the United States and Canada. The losses of subscribers around the world are lower than she had expected but, concerning the drop in the two countries mentioned, the reality exceeds the forecasts.
A partnership with Microsoft
They announced it in mid-July. Netflix is partnering with Microsoft and Microsoft will therefore become Netflix’s global technology and advertising sales partner. They plan to launch in early 2024 and for now it will be ad-free.
First, it will be rolled out in markets where advertisers are spending the most money and then they will notify. Such an approach was carried out in the hope of having many more memberships following the decrease in prices but also to have much more profits. It should not be forgotten that the number of subscribers dropped a week or so after this partnership announcement.
Password sharing, a plague for the company
One of the reasons Netflix fails to attract more subscribers is password sharing. Netflix is well aware of this and has also stated that it is increasingly difficult for them to increase the number of members in many markets. That’s why he’s getting more and more strict about it. According to the company, there are more than 100 million households using their streaming service by sharing passwords.
But it’s not all bad news. The viewing time has increased. Nielsen, a research company, revealed that Netflix viewing in the United States has seen a sharp increase: 6.6% in June 2021 compared to 7.7% in June this year. And still according to the earnings report, Netflix plans to acquire Animal Logic, the animation studio that was behind the famous The Lego Movie.
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