‘Less bad results’: Netflix loses 1M subscribers and reports total revenue of $11.5bn in Q2 2022
Netflix, Inc. (NASDAQ: NFLX) has today released its second-quarter 2022 financial results, which showed a loss of one million net paid subscribers, better than its projection of two million, with shares up 10% in after-hours trading.
The company posted total revenue of US$7.97 billion (A$11.5 billion), up 9%, but, missing analysts’ expectations of 8.04 billion (A$11.6 billion).
In APAC, revenue grew 23% year-on-year, with over US$900 million (A$1.3 billion) of revenue.
During the streamer’s Q2 earnings interview, Netflix co-chief executive, Reed Hastings, called it “less bad results.” he added, “it’s tough losing one million subscribers and calling it a success.”
Hastings also said linear TV will diminish in the next decade. It’s definitely the end of linear TV over the next five to 10 years,” he said.
The company noted in the near term, a key priority to re-accelerate revenue growth is to evolve and improve our monetisation.
“In the early days of streaming, we kept our pricing very simple with just one plan level. In 2014, we introduced three price tiers to better segment demand.
“Going forward, we will focus on better monetizing usage through both continued optimization of our pricing and tiering structures as well as the addition of a new, lower-priced ad-supported tier.”
The company continued: “We’re in the early stages of working to monetize the 100m+ households that are currently enjoying, but not directly paying for, Netflix. We know this will be a change for our members. As such, we have launched two different approaches.”
Netflix currently trades at US$201.63(A$296.09) and has a market capitalisation of US$89.57 billion (A$129 billion) as of 20 July 2022.
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