Netflix loses nearly 1 Million subscribers in 2nd quarter

Netflix Inc said that it lost 970,000 subscribers from April through June leaving the company with just shy of 221 million subscribers.

It reported losing subscribers for the second quarter in a row as the streaming giant battles fierce competition and plateauing demand.

After years of amassing subscribers, Netflix also lost 200,000 customers worldwide in the first quarter compared to the end of 2021, which sent its share plunging.

The streaming giant reacted by announcing the arrival of advertisements on the service, with the aim to finance the investments necessary to maintain its position as leader in the industry that it launched.

Analysts noted the results, even if less bad than feared, still weren't great news.

Earlier, Netflix had made it clear that the company will get tougher on sharing logins and passwords, which allow many people not to pay to access the platform's content.

In an effort to draw new subscribers, Netflix will work with Microsoft to launch a cheaper subscription plan that includes advertisements.

Netflix opted to develop the lower-cost offering after a disappointing first quarter in which it lost subscribers for the first time in a decade, and after years of resistance against the very idea of running ads.

The ad-supported subscription will be in addition to the three options already available, the cheapest being $10 per month in the United States.

Microsoft will be responsible for designing and managing the platform for advertisers who want to serve ads to Netflix users.