Netflix subscribers drop in US and Canada
After Netflix reported a loss of subscribers for the first time in more than a decade last quarter, the company's second-quarter earnings report revealed a drop in subscribers worldwide by 1 million, including a drop of 1.28 million in the US and Canada alone between the end of the year. March and end of June.
According to The Verge, it's better than the company's forecast of losing 2 million subscribers worldwide, but the subscriber shortfall in the US and Canada is double the drop of 600,000 subscribers in the first quarter.
Netflix reported that it has 73.28 million paying subscribers in the United States and Canada and 220.67 million worldwide.
This comes nearly a week after Netflix announced a partnership with Microsoft on a cheaper ad-supported category that it expects to launch by early next year.
In the letter, Netflix confirmed that its current plans will remain ad-free.
Netflix executives remain optimistic about the potential for an ad-supported layer, noting that “in the long term, we believe advertising can enable significantly increased membership (through lower pricing) and revenue growth (through ad revenue).