In April, while the company was reeling, the streaming behemoth anticipated an upcoming loss of two million subscribers, according to NPR. Its estimation was off. Instead, Netflix lost just under a million customers: 970,000, said the corporation’s second-quarter earnings report.
The company report leading into Q3 has a rosy outlook, says NPR. Netflix expects an increase of about a million subscribers in the third quarter. Investors have responded, and the company’s stock is up more than 12% this week.
Netflix unveiled details on a range of efforts aimed at raising subscriber counts again and finding new revenue, said NPR. Among their efforts are methods to crack down on password sharing; Netflix believes approximately 100 million households are using their service for free.
In addition, the company said it has linked with Microsoft to form a lower-priced subscription model which would feature advertisements within their programming — something Netflix tried to do without.
According to NPR, the company report has two different testing approaches in the works. Among them are “add a member” and “add a household” options, with fees totalling about US$2.99 (RM13) per month.
Netflix says it has 220.7 million subscribers. It remains the largest streaming service.
Additionally, NPR says the report mentions the success of Stranger Things, which became its biggest English-language TV hit ever in its fourth season, with 1.3 billion hours viewed.