Netflix has reversed the trends in the first two quarters of 2022 by adding 2.4 million new subscribers that puts the streamer back on track in the competitive streaming market.
Earlier, the streaming service had a hard time retaining its subscriber base as subscribers kept leaving and stock prices kept falling. People were not happy with the content quality and prices seemed to be on a steep rise.
Now, after losses over the two quarters, the streamer’s two major strategic changes has boosted the subscriber number. Although they had forecast a net addition of 1 million new customers, the streamer is now home to 2.4 million new subscribers. The company has also released a statement to its shareholders promising to “reaccelerate growth” after a “challenging first half.”
Although their quarterly subscriber growth this year is slower than the last (with Netflix attracting 4.4 million new customers), the streamer is slowly aiming to add 4.5 million new customers by the end of this year.
Demographically, the streamer has profited the most from Asian countries that saw 1.43 million new customers. Europe, Africa and the Middle East had a larger growth than the US and Canada which seem to have reached saturation with the number of existing subscribers. Only 100,00 new subscribers joined Netflix from US and Canada.
The two major strategic decisions made by Netflix seems to have played in its favor. They have decided to introduce the ad-supported content that will not only help increase the average revenue per customer but also bring down the cost to $6.99 a month.
They have also been actively working on cracking down on password sharing where viewers must pay for shared accounts. Netflix plans to introduce this policy by next year.