Netflix Q2 Report Shows Largest Drop In Company History Despite ‘Better-Than-Expected’ Results
Netflix is still losing subscribers at an alarming rate.
Though the streaming giant released “better-than-expected” results in its second quarterly report on Tuesday, Netflix had approximately 970,000 subscribers cancel their membership during the last three months.
Reed Hastings, the company’s CEO, gives credit to shows like “Ozark” and “Stranger Things” for the “less bad results,” even though they mark the biggest loss in customers since its foundation 25 years ago.
“If there was a single thing, we might say ‘Stranger Things,’” Hastings said. “But again, we are talking about losing 1 million instead of losing 2 million.”
At the time of this writing, Netflix holds roughly 220 million subscribers, and per the company’s second quarterly report, it anticipates adding another million subscribers by Q3.
“We’ve been through hard times before,” the streaming giant said in its shareholder letter. “We’ve built this company to be flexible and adaptable, and this will be a great test for us and our high-performance culture.”
“We’re confident and optimistic about the future,” the company said.
While Netflix praises its hit TV shows that have developed a cult-like following over the years, it’s worth noting that the company has also taken steps to rid its platform of woke content. Examples can be seen in the removal of Ibram X. Kendi’s “Antiracist Baby” among other titles.
But perhaps these efforts have not been enough, considering Netflix has still kept and promoted various progressive titles like How To Build A Sex Room which has been met with backlash due to its inappropriate nature.
Netflix fans praise How To Build A Sex Room as it shows kink in 'positive' way https://t.co/uFl0hL3PT8
— melanieruthrose (@melanieruthrose) July 12, 2022
Earlier this year, Netflix took a hardline stance against woke employees in a new “culture memo” that informed staff about programming changes. The memo stated that if staffers did not like said changes, they might be working for the wrong company.
Some believe this change in Netflix’s company culture came after the major backlash from woke employees last year over its “transphobic” Dave Chappelle special, “The Closer.” The letter was most likely a warning shot regarding walkouts like the one woke employees staged against Chappelle.
Perhaps Netflix’s “better-than-expected” Q2 results are a sign that their initiatives are working. But still, only time will tell whether the business can bounce back despite all the optimism from its higher-ups.
The company has an uphill battle considering the looming global recession, skyrocketing inflation, and the heavy lineup of parallel alternatives like DailyWire+ that consumers are flocking toward in droves. Netflix has a long way to go.