Netflix lost nearly 1Mln paid subscribers since April
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Netflix faces a difficult battle to retain its crown after a long reign as the king of streaming.
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Netflix lost nearly 1Mln paid subscribers since April
Netflix, the US-based streaming service, announced on Wednesday that it saw a paid membership drop of 970,000 users in the second quarter of the year, which the company expects to offset with a 1 million increase next quarter.
The company reported losing 200,000 paid subscribers overall in the first quarter and 700,000 users in Russia after exiting the Russian market in late April. The company predicted a net loss of 2 million subscribers in the second quarter, resulting in a 25% drop in share price.
"We slightly under-forecasted global paid net adds in Q2 (-1.0m vs. -2.0m forecast and compared to +1.5m in the year-ago quarter)," Netflix said in a shareholder letter.
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Netflix expects a million new subscribers in the third quarter to compensate for Q2 losses, bringing the total number of paid members back to 221.67 million.
The company's net income increased by 6.5 percent in the second quarter compared to the same period last year, reaching $1.441 billion, according to the statement.
The company's operating income fell 14.6 percent year on year to $1.578 billion, while diluted earnings per share increased to $3.2 from $2.97 a year earlier, exceeding the company's forecast of $2.96. Revenue increased by 8.6 percent year on year, reaching $7.97 billion, slightly less than the $8.03 billion expected.
It anticipates a 4.7 percent increase in third-quarter revenue, with total year-on-year income reaching $7.838 billion.
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