Netflix lost almost a million subscribers worldwide in the three months to 30th June.
The loss of 970,000 paying customers was confirmed in the company’s latest financial results, released on Tuesday night.
It comes as Netflix faces growing competition from both recently launched rival streamers and consumers tightening their belts as a result of increases in household bills.
Subscriber numbers have been falling for months since the effects of a pandemic-related boom in streaming began to wear out. The decision to close its Russian business earlier this year amplified the fall in subscriber numbers.
Meanwhile, analysis published this week confirms that the number of households in Britain who use at least one subscription video-on-demand service has fallen for the second quarter in a row.
Data from Kantar’s Entertainment on Demand survey showed the greatest fall across the sector was from the under 24s, who are bearing the brunt of the cost of living crisis.
In total, the number of households that subscribed to at least one video streaming service in Great Britain fell to 16.42 million, down 488,000 quarter on quarter, representing 56% of households.
How is Netflix planning to fight back?
In the run up to the financial results statement, Netflix has unveiled a number of steps it hopes will keep subscribers on board.
- It has entered a deal with Microsoft to develop a cheaper, ad-supported subscription tier.
- It will begin charging users who share their accounts with other households. Netflix will pilot the scheme from next month in certain Central and South American countries.
What next for subscriber numbers?
Netflix has told investors it expects subscriber numbers will bounce back in the current quarter. It expects the above mentioned arrival of an ad-funded tier will also boost numbers.
“Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we’ve done for the last 25 years, and to better monetize our big audience.”
Aidan Smith, editor, RXTV