This news comes by Hollywood journalist, which reports that Netflix exceeded its expectations for the second quarter after increasing its subscriber count by 1.5 million. This brings its total subscriber base to 209 million.
Spotlight on Netflix: July 2021
However, despite this growth, largely supported by a network of over one million new subscribers in the Asia-Pacific region, the company saw its North American subscriber base drop by 400,000. In terms of revenue, the company generated $ 7.3 billion in the second quarter, up from $ 7.16 billion in the first quarter.
In many ways, the news is positive for Netflix. Lower marketing and content spend resulted in margins that have never been higher, with average revenue per user in the US and Canada rising to $ 14.54 in the second quarter, more than any other streaming service on the market, according to Netflix. This average revenue per user number, however, is less than $ 10 in the Latin American and Asia-Pacific markets.
As to why the subscriber base in North America has plummeted and why the company struggled in 2021 compared to previous years in its history, Netflix says COVID-19 is to blame.
“Frankly, it really comes down to COVID,” Netflix CFO Spencer Neumann said on a company earnings conference call. “For us, at a minimum, it creates some short-term instability in business trends. ”
Netflix expects “3.5 million net subscribers added in Q3 2021”. This represents a change in follower expectation from the company that has aimed higher over the past year. The modest 3.5 million expectation likely stems from the company’s first quarter, which only saw it add just 4 million subscribers despite a forecast of 6 million. Netflix is said to have added 15.8 million subscribers in the same quarter in 2020.
“We’ve had those 10 years that were smooth as silk, and we’re just a little wobbly right now,” Netflix co-CEO Reed Hastings said on the call.
Despite this instability, Netflix “is betting that a return to more standardized film and television production and increased original frame rates later this year will help it return to growth,” according to THR.
Perhaps Netflix’s adventure in video games will help fuel further growth for the company, which has just come from. hired ex-EA and Facebook executive Mike Verdu to lead game development. Netflix today revealed that it will focus on mobile games first in this new venture, saying it will not charge extra fees for games.
Wesley LeBlanc is a freelance news writer and guidebook maker for IGN. You can follow it on Twitter @LeBlancWes.