Netflix subscriber count in the US and Canada dropped by 1.3 million over the last three months

Illustration by Alex Castro / The Verge

In the second quarter of this year, the number of worldwide subscribers fell by 1 million, including a drop of 1.28 million in the US and Canada. The subscriber shortfall in the US and Canada is twice what it reported for the first quarter. In the US and Canada, the company has 73.28 million paid subscribers.

Just a week ago, it was announced a partnership with Microsoft on its cheaper ad-supported tier. The current plans of the company will remain ad-free. Over the long run, we think advertising can enable substantial incremental membership and profit growth.

It will be rolled out in the markets where advertisers spend the most money. The executives wrote, "Our hope is to create a better-than- linear-TV advertisement model that's more seamless and relevant for consumers, and more effective for our advertising partners." There has been an increase in viewing time. According to the study done by the research firm, the share of US TV viewing byNetflix rose to an all-time high of 7.7 percent in June 2022.

The revenue increased from $7.3 billion to $7.97 billion over the course of the year. There was some good news despite the streamer running into a couple of problems in recent months. The season 4 release of Stranger Things boosted the series to the second most-watched show on the service, behind the Korean-language hit Squid Game, which will return for a second season. Animal Logic was behind The Lego Movie.

An ad-supported tier is one of the ways that the company is trying to counteract a decline in subscribers. The company blamed password sharing for its initial decline in subscribers last quarter, but now wants to lock in un paying subscribers as well.

An easy-to-use paid sharing offering is one of the things that the execs are working towards. In March of this year, the company began testing out subaccounts for users located outside of the primary account holder's household in three Latin American countries. In order to crack down on password sharing, the company has begun allowing users in Argentina, El Salvadoran, Guatemala, Honduras, and the Dominican Republic to buy an additional home where they can use the service on all devices.

Increasing competition from newer players in the streaming industry is one of the biggest threats to the company. In the last quarter, the subscriber count of Paramount Plus grew to almost 40 million, while Disney Plus gained 8 million users. Disney Plus will launch an ad-supported tier later this year, as well as using livestreaming for some shows like Dancing With the Stars, which is currently being tested by Netflix.

There will be a video call on the Investor Relations channel at 6PM on the day of the earnings.

There is a series produced by The Verge with the internet service provider.