Last Updated: January 18, 2022
The video-streaming giant Netflix reported its Q2 earnings on Tuesday, revealing that they exceeded the analysts’ expectations for new subscribers but missed the estimated analysis for Q3.
The analysts expected revenue of $7.32 billion, and Netflix reported $7.34 billion, which was a close estimate. When it comes to the earnings per share, Netflix reports $2.97, whereas the analysts expected the earnings to be $3.14. Unexpectedly, however, Netflix reports 1.54 million new subscribers versus the estimated 1.12 million.
Netflix had 207.46 million subscribers prior to this quarter and since the video giant welcomed 1.54 million new subscribers, the platform has now become home to 209 million users.
The streaming pioneer has always quickly adapted and successfully overcome competition. But, now it’s losing market share as streaming platforms such as HBO Max and Amazon Prime have stepped up their game. When analyzing what comedies and horror movies watchers seem to love, Hulu is becoming a force to reckon with as well. Here’s how the numbers have changed since the first quarter this year: both HBO Max and Amazon Prime received a slight increase of 0.6%, whereas Hulu experienced a slight drop in the numbers, 0.3% exactly.
Will Netflix’s Pandemic Success Continue?
Netflix’s success peaked in 2020 due to the pandemic that took people by surprise at the beginning of the same year. Consumers around the world stayed at home, allowing Netflix to gain a massive audience. Even though Netflix is available on a global scale, the availability of the shows and movies varies depending on which region the user lives in. But thanks to the VPNs fit for streaming, users can watch their favorite shows wherever they are, making Netflix even more attractive to its userbase.
That’s one of the many reasons why Netflix experienced unimaginable user growth last year. As the lockdown restrictions are being relaxed and people slowly go back to living life as before the pandemic, it leaves Netflix without as many subscribers.
Analysts predict that Netflix will get back on track in the Q3 and especially in Q4, due to numerous great shows coming back on air. The famous analyst Matthew Thornton explains for Yahoo Finance: “We think the content slate improves in [Q3] (‘Fear Street,’ ‘La Casa De Papel,’ several returning popular rom coms and unscripted series) and more so in [Q4] (‘Cobra Kai,’ ‘The Witcher,’ ‘La Casa De Papel,’ several high profile films)”.