The streamer had previously predicted a 2 million dip in the second quarter.
Netflix continues to bleed customers in the U.S. and Canada. The company hiked prices in January in the U.S. and Canada for the first time since 2020 in a move designed to drive revenue, but it also resulted in increased churn. The company has three big initiatives to break its loses:
- Launching a cheaper subscription tier (ad-supported). After months of speculation, Netflix’s ad-supported tier has a tentative launch date, targeting early 2023. Previous reports indicated the company had hoped to debut its ad-supporting offering as early as the end of this year.
- Crack down on password-sharing. Last quarter, Netflix estimated that more than 100 million households had access to the streaming service via password sharing. While it previously indicated it would crack down on password sharing, “paid sharing” is now set to roll out in 2023.
- Recreate that Stranger Things magic. Netflix wants franchises so popular that fans get tattoos of them. Netflix told Reuters that they’re giving a dozen Netflix shows and movies the Stranger Things treatment (merchandise, spinoffs, IRL events) in the hopes to create its own Star Wars.
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