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Netflix just lost 1.3 million subscribers. It's ready to woo you back with... ads
And it just might work. Netflix lost fewer subscribers than anticipated and that ad tier will be cheaper starting in early 2023.
➡️ The Shortcut Skinny
😬 Netflix lost 1.3m subscribers in the US & Canada in Q2 2022
😅 Good-ish news: that’s fewer than the initially forecasted 2m canceled subs
📈 Better yet: Netflix anticipates 1m new subscribers in Q3; its stock is up 13%
📆 Coming in 2023: a cheaper ad-supported tier to bring more people back
🔐 Netflix will also crack down on password sharers outside their primary home
You know who has two thumbs and doesn’t have ads? THIS GUY 🤗
Netflix is attempting a rebound that’s fit for a Hollywood movie, and today’s story has plenty of ups and downs (but, hey, stranger things have happened).
📖 The plot? Netflix’s single-day $50 billion loss in value in April came as it reported 200,000 paid subscribers canceled the streaming service in Q1 – its first-ever loss of subscribers – and forecast that it would likely shed 2 million subscribers in Q2 2022.
🎬 Action! Fewer subscribers were lost than anticipated, with 1.3m households in the US and Canada canceling their Netflix service, according to Bloomberg. There were another 770,000 cancelations in Europe, the Middle East and Africa, but this was offset by the growth in its Asia-Pacific market, so it didn’t hit a 2 million loss.
😍 Cue the happy-ish ending: Netflix wants to make its service cheaper – if you’ll kindly watch a bunch of ads (as someone who runs The Shortcut along with Adam without ads, being banner-ad-free is great – but costly. I get it!).
The ad-supported Netflix plan will launch in early 2023, according to the company’s earnings call. Netflix took on outdated ad-heavy TV and movies and… it’s becoming what it basically destroyed. The horror! 🧟♂️
🤗 Welcome home: Netflix also expects to have one million new subscribers in Q3 2023, erasing its devastating losses from the first half of this year. On this news, its stock has jumped 13.5% after hours.
🛑 The jig is up: Yesterday, we covered the fact that Netflix is coming up with ways to stop password sharing outside of your home – when you’re streaming on a TV for more than two weeks (mobile will still work fine). It’s currently testing it in select Latin American markets, which have to pay $2.99 to add extra households to their plan.