Netflix Loses Almost a Million Subscribers in Last Quarter (2024)

• Netflix had roughly 220 million subscribers at the end of June
• The company reported that it had lost almost 1 million subscribers between April and July of 2022
• Loss of subscribers mainly due to price increase in the monthly plan and competition in the streaming market

Overview of Netflix Paid Subscribers

Netflix, Inc. is one of the world's leading entertainment services with approximately 220 million paid memberships in over 190 countries, enjoying TV series, documentaries, feature films, and mobile games across various categories and languages.

In April 2022, the company revealed its first subscriber decline since 2011, with a loss of 200,000 subscribers in the first quarter of 2022 (1Q 2022). During the 2Q 2022 earnings, Netflix reported nearly a 1 million subscriber loss between April and July. This is the company's largest-ever subscriber losses, with the US and Canada having the most cancellations in the quarter, followed by Europe.

Why Netflix Suffered Subscriber Losses?

Netflix revealed that it had lost 1 million members for the first time intwo decades; it claimed that it was a result of rising inflation and increasing competition in the streaming market.

Price increases are also the reason behind the loss of Netflix subscribers. Netflix plans and pricing show that, in the United States, a "standard" plan that allows two users to watch content simultaneously per account costs $15.49 in June 2022, up from $14 in January 2022. In the UK, basic and standard plans have increased since January by GBP1 a month to GBP6.99 and GBP10.99, respectively.

As the pandemic eases, other video streaming services are also working hardto attract new users with their own award-winning programming. The company faces strong competition from Apple TV, HBO Max, Amazon Prime, and Disney+.