In July, the company predicted that it would add one million new subscribers this quarter, thanks to the release of popular shows like the second half of Stranger Things and the fifth season of Cobra Kai. The wager was a success. Monster: The Jeffrey Dahmer Story is one of the big hits of the quarter, according to the company. The majority of the new subscribers are outside the US.
Revenue was higher than expected, at $7.9 billion, a 5.9% increase from the same time last year. The company's profits are down from September 30, 2011. The company wrote in its letter to shareholders that it believes it is on a path to reaccelrate growth after a difficult first half.
The streaming giant has been struggling with finances. At a time when analysts have predicted a gain of more than two million subscribers, the company reported its first subscriber loss in a decade. In response, its stock plummeted. Several big layoffs, cutting hundreds of employees, as well as the possibility of ads on the platform, were instituted by the company.
The second quarter of the year didn't bode well for the company, as subscriber numbers continued to decline. The company started testing different versions and features of the proposed changes after the double user dump.
A cheaper, ad-supported subscription plan was going to be launched in November. The plan will cost $6.99 per month in the U.S., exclude some titles because of licensing restrictions, and prevent users from download shows.
A way to transfer viewer profiles between accounts was introduced yesterday by the streaming service. Although the initial announcement avoided mentioning password sharing altogether, the move comes in obvious preparation for the looming, promised password cracking. Without the ability to transfer profile information to new paying accounts, a lot of people's preferences could have been lost.
After landing on a thoughtful approach to monetize account sharing, we will begin rolling this out more broadly in early 2023. After listening to consumer feedback, we will offer the ability for borrowers to transfer their profile into their own account, and for sharers to manage their devices more easily, if they want to pay for family or friends.
The only household name in streaming is facing increased competition. Every media company has its own service, and people are choosing their loyalties in a crowded field. The company blamed its competitors and the war in Ukraine for its recent troubles. It is possible that mismanagement at the core of the company's model had something to do with it. The company will survive even if there is rot in its business plan.
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