According to new data shared during the company's earnings call, in the second quarter of 2022, the company lost 1.3 million subscribers in the US and Canada. The company had 73.28 million memberships during the quarter, down from 74.58 million in the first quarter of the year.
The total number of subscribers dropped by 970,000. It is a win because it is more than the 200,000 customers that it lost in the first quarter of the year.
Some customers have stopped using the service due to the price increases. The prices for all of the plans were raised in January. The standard definition plan went from $8 to $9.99, the standard HD plan went from $13 to $15.49, and the 4k plan went from $17 to $19.99.
Despite a loss of U.S. subscribers, revenue was up nine percent year over year thanks to an increase in average revenue per membership. The company expects to add one million subscribers in the third quarter.
The company blames the loss of subscribers on connected TV adoption, account sharing, and competition, as well as to improve revenue growth.
A lower-priced ad-supported tier is in the works and is set to launch in early 2023, and it could draw in some of the subscribers that have left because of the rising costs. The 100 million households that are currently enjoying but not directly paying for, are being monetized by the company.
The company is looking for an easy to use paid sharing offering. In Latin America, a $3 fee is being used to add another household to a plan.
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