(CNN) — Netflix reported on Tuesday that it lost 970,000 subscribers in the second quarter of 2022, a figure well below its own forecasts, which had projected that the streaming giant would lose two million subscribers.
Investors were clearly pleased with the results. Shares of Netflix rose 8% on Tuesday in following-hours trading.
Netflix said it would add another 1 million subscribers in the third quarter, figures that were slightly lower than Wall Street’s expectations.
So, with Wall Street, Hollywood and the media world all fixated on Netflix’s subscription numbers, the company momentarily stopped the bleeding during a nightmarish year.
bad year of netflix
In April, the company reported that it had lost subscribers in the first quarter of 2022, the first time that had happened in any quarter for more than a decade.
The number of subscribers he lost at that time amounted to 200,000, which seems minimal compared to his 221 million global subscribers. However, losing that number of users was very relevant, since the company had previously forecast that it would add 2.5 million new subscribers for that quarter, which turned out completely different.
Posteriorly, Netflix shares burned (currently down close to 70% year-to-date), wiping out billions of dollars in market value, and the company laying off hundreds of employees.
Netflix pins its hopes on a potential savior: .
The company announced Wednesday that it will partner with Microsoft on a new, cheaper ad-supported subscription plan. Despite the fact that Reed Hastings, CEO of Netflix, was resistant to the idea for years, is now an important part of Netflix’s plans to increase revenue in the future. The new plan is reportedly coming before the end of 2022, but Netflix admits its fledgling ad business is in its “early days”.
The company will also focus on clamping down on password sharing and creating engaging content to help turn the tide.