It was big news back in April when Netflix’s first-quarter earnings call dropped a bombshell. After years of unparalleled growth, the biggest dog on the streaming block was injured. The industry was shakn by the news that it had lost 200,000 subscribers, the first decline since 2011.

Netflix

As the cost of living crisis made families focus on outgoing expenses, and with Disney+, Paramount+, and HBOMax all piling into the market and stacking up content based on world-renowned IP, the projections were harsh. The second quarter losses were expected to be around 2 millions subscribers.

The stock price reflected this and investors were braced for revenue to fall.

Well, it is not as bad as they feared. There was a loss of subscribers reported in the second quarter earnings call. 970,000 subscribers. A lot, but well below the projected 2 million.

According to CNBC the revenue for the quarter increased 9% to $7.97 billion and the third quarter projection indicates an estimated 1 million subscriber gain. The Gray Man, The Crown season 5, Teenage Mutant Ninja Turtles, and Sandman are some of the content that might drive this.

They are launching an ad-supported version early next year and will hold their $17 billion per-year content spend level. The entire market reacted positively to the news with Netflix shares rising by 7% and a halo effect lifting Disney, Paramount, and Warner Bros. Discovery.

The perceived weakness had set a few sharks circling, with Netflix and Apple TV+ being the only major streamers not tied to a major studio, but Apple being extremely cash rich.

Analysts predicted a potential acquisition offer coming in from Microsoft for Netflix. That has failed to materialize… so far.

Check back every day for new content at Last Movie Outpost.
To like us on Facebook Click Here
To follow us on Twitter Click Here
See our YouTube channel Click Here