Netflix has lost more subscribers for the second quarter in a row as the streaming giant battles growing competition amid viewers belt tightening, but the company has assured investors of better days ahead.
The loss of 970,000 paying customers in the most recent quarter was not as big as expected, as the company was left with just 221 million subscribers.
“Tough in some ways, losing a million and calling it success, but really we are set up very well for the next year,” co-chief and founder of Netflix, Reed Hastings said.
The company said in its earnings report that it had expected to gain a million paid subscribers in the current quarter. Netflix shares were up slightly in after-market trades — a sign that investors were remaining faithful.
Analysts noted that the results, even if not as poor as feared, were still troubling.
“Netflix’s subscriber loss was expected but it remains a sore point for a company that is wholly dependent on subscription revenue from consumers,” said analyst Ross Benes.
Benes added that “unless it finds more franchises that resonate widely, it will eventually struggle to stay ahead of competitors that are after its crown”.
Netflix has been investing heavily in original content such as hit shows “Squid Game” and “Stranger Things” to fend off powerhouse competitors such as Disney, with its Marvel and Star Wars franchises.
