Netflix subscriber numbers drop two quarters in a row

Netflix reported on Tuesday losing subscribers for the second quarter in a row as the streaming giant battles fierce competition and plateauing demand.

But the loss of 970,000 paying subscribers was less than expected, leaving the company with just shy of 221 million subscribers.

In June, it was reported that an estimated 300 employees Netflix would be laid off. This follows an earlier round of staff cuts that took place a month earlier.

A Netflix spokesperson told Variety it’s still “aggressively investing in new content” even though it has since a massive dip in subscriptions.

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“While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.

“We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition,” said Netflix spokesperson Bao Nguyen in a statement to The Verge.

The staff cuts mostly impact US-based personnel across several “different teams”, but it’s understood international roles are also being cut.

Disruptor disrupted as players emerge

Netflix has quickly risen to become the world’s stream king since it launched in 1997.

But the online streaming platform has finally started to take a hit amid the onslaught of new and revamped competitors, including Disney’s Disney+, Comcast’s Peacock, Paramount Global’s Paramount+ and Warner Bros. Discovery’s HBO Max.

New platforms mean more choices for customers, which each competitor debuting newer, splashy and high-budget titles on their services.

This has increased pressure on Netflix to attract and retain subscribers. Its also been losing valuable library content to companies bringing their content back home for their own streamers.

Netflix committed to cutting costs in order to keep its margins at 20%, according to Variety.

But it still plans to spend aggressively on content with a budget of $17 billion in 2022 for shows and films – roughly in line with what it shelled out in 2021.

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Additional reporting by Narissa Subramoney