Netflix subscriber count drops by 1 million

As the streaming giant battles fierce competition and viewers tightening their purse strings, Netflix on Tuesday reported losing subscribers for the second consecutive quarter. However, the company reassured investors that better days were ahead.

Netflix had just under 221 million subscribers after the most recent quarter, which was less than anticipated given the loss of 970,000 paying customers.

The number of subscribers worldwide fell by 1 million, with a drop of 1.28 million in the US and Canada alone between the end of March and the end of June, according to Netflix’s Q2 earnings report, which came after the company reported losing subscribers for the first time in more than a decade last quarter.

“Tough in some ways, losing a million and calling it success, but really we are set up very well for the next year,” the company´s co-chief and founder Reed Hastings said in an earnings presentation.

In its earnings report, the company stated that it had forecast a million new paid subscribers for the current quarter. In after-hours trading, Netflix stock was slightly up, indicating that investors were still sticking with the company.

Analysts noted that the results were troubling even though they were not as bad as anticipated.

“Netflix´s subscriber loss was expected but it remains a sore point for a company that is wholly dependent on subscription revenue from consumers,” said analyst Ross Benes.

“Unless it finds more franchises that resonate widely, it will eventually struggle to stay ahead of competitors that are after its crown,” Benes added.