Netflix Lost 1.3 Million U.S. and Canadian Subscribers in Q2 2022

Netflix in the second quarter of 2022 lost 1.3 million subscribers in the United States and Canada, according to new data shared today during the company's earnings call. Netflix had 73.28 million paid memberships during the quarter, down from 74.58 million in the first quarter of 2022.

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With subscriber additions in some other areas, Netflix in total dropped 970,000 subscribers worldwide. That's more than the 200,000 customers that it lost in Q1 2022, but it is ultimately a win because Netflix was expecting to lose as many as 2 million subscribers.

Netflix has been raising its prices, which has resulted in some customers turning away from the service. In January, Netflix increased the prices for all of its plans. The basic standard definition plan went from $8.99 to $9.99, the Standard HD plan went from $13.99 to $15.49, and the 4K plan went from $17.99 to $19.99.

Despite the U.S. subscriber loss, revenue was up nine percent year over year, which Netflix says is the direct result of an increase in average revenue per membership. In the third quarter of 2022, Netflix is expecting to add one million subscribers.

Netflix blames its subscriber loss on connected TV adoption, account sharing, and competition, and to continue to improve revenue growth, the company says that it is focusing on evolving monetization.

A lower-priced ad-supported tier is in the works and is set to launch in early 2023, and the lower-cost plan could draw in some of the subscribers that have abandoned Netflix because of the rising costs. Netflix says that it is also working to monetize the 100 million+ households that are "currently enjoying, but not directly paying for, Netflix."

The company is aiming to find an "easy-to-use paid sharing offering" that can be rolled out in 2023. Right now, Netflix is experimenting with a $3 fee to add an additional household to a Netflix plan in Latin America.

Tag: Netflix

Top Rated Comments

Think|Different Avatar
7 months ago
It's because they are one of the only streaming holdouts that want to charge for 4K...in 2022.
Score: 85 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
7 months ago
If they keep on charging extra for higher screen resolution. They will continue to lose more subscribers.
Score: 59 Votes (Like | Disagree)
contacos Avatar
7 months ago
HAHAHA

I wish them nothing but the worst. Blaming users for their fading business model is coming off as very condescending
Score: 42 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
7 months ago

Netflix blames its subscriber loss on connected TV adoption, account sharing, and competition, and to continue to improve revenue growth, the company says that it is focusing on evolving monetization.
Netflix really needs to stop blaming the consumers and they should focus on the actual "High Quality/Level Content" they should be making.
Score: 31 Votes (Like | Disagree)
cb3 Avatar
7 months ago
Why I'm thinking of leaving Netflix: Finding their content less and less interesting. Price is going up.
Score: 29 Votes (Like | Disagree)
Macative Avatar
7 months ago
They raised prices, and lost some people, but ultimately made more money because not enough people canceled.

That's exceptionally disappointing as a former customer.
Score: 27 Votes (Like | Disagree)

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