Netflix only loses 970,000 subscribers in second quarter after warning of loss of 2 million

Netflix only loses 970,000 subscribers in second quarter after warning of loss of 2 million


Fans gather at the Netflix booth at a trade show.

Mike Blake | Reuters

Netflix shares jumped 8% after the company said it lost fewer subscribers than anticipated during the second quarter.

The company also said it aimed to unveil its lower-cost, ad-supported tier in early 2023. This comes on the heels of Netflix tapping Microsoft to be its partner on the ad-supported offering.

“We’ll likely start in a handful of markets where advertising spend is significant,” the company explained. “Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering. So, our advertising business in a few years will likely look quite different than what it looks like on day one.”

Netflix had warned investors last quarter that it expected to shed around 2 million subscribers, but only lost around 970,000 during the three month period ending June 30.

Here are the results:

  • EPS: $3.20 vs $2.94 per share, according to Refinitiv.
  • Revenue: $7.97 billion, vs. $8.035 billion, according to Refinitiv survey.
  • Global paid net subscribers: A loss of 970,000 subscribers vs. expectations of a loss of 2 million, according to StreetAccount estimates.

The company told shareholders that it expects net adds to reach 1 million in the third quarter, reversing some losses seen during the first half of the year. Analysts had predicted Netflix would guide for growth of around 1.8 million.

Netflix also noted that it is in the early stages of its paid sharing plan. This is an effort it mentioned last quarter that would upcharge some members for sharing their subscription with family members or friends that live outside their home. The company said it is looking at two different approaches in test cases in Latin American that can inform a wider rollout in 2023.

This s a breaking news story. Please check back for updates.



Source

Sen. Warren asks FTC to consider blocking Dick’s-Foot Locker merger over antitrust concerns
Business

Sen. Warren asks FTC to consider blocking Dick’s-Foot Locker merger over antitrust concerns

Foot Locker and Dick’s Sporting Good stores. Reuters Sen. Elizabeth Warren is calling on the FTC and DOJ to consider blocking Dick’s Sporting Goods’ proposed acquisition of Foot Locker, writing in a letter to the agencies that the merger could cut jobs, raise prices and reduce competition.  The missive, sent Tuesday evening, asks the agencies […]

Read More
What the end of Energy Star could mean for commercial real estate
Business

What the end of Energy Star could mean for commercial real estate

An Energy Star sign on a building. Lynne Gilbert | Moment Mobile | Getty Images A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors […]

Read More
Disney reports earnings before the bell. Here’s what to expect
Business

Disney reports earnings before the bell. Here’s what to expect

A water tower stands at Walt Disney Studios on June 3, 2025 in Burbank, California. Mario Tama | Getty Images Disney reports its fiscal third-quarter earnings before the bell on Wednesday, and Wall Street will be looking for updates on the state of its streaming, TV and movies businesses, as well as its theme parks. […]

Read More