Netflix loses 1 million subscribers! The biggest loss of subscribers in its history

Netflix has lost nearly a million subscribers in the second quarter of 2022, the worst customer drain in the history of the company since it was created in 1997, the company recently disclosed.

The company said that 970,000 subscribers left the service during that period.

However, Netflix shares rose more than 10% in post-closing trading because the bad news may not be as bad as investors had expected.

That's because Netflix had forecast a net loss of 2 million subscribers for the second quarter of the year, while analysts had expected a loss of between 1.4 million and 1.8 million.

According to a Breitbart report, the company is working on a new ad-supported version of its service, which is expected to be cheaper than any of its current subscription offerings.

By the close of markets on Tuesday, Netflix shares had lost about two-thirds of their value compared to earlier in the year. Since the first quarter of 2022, the company lost 200,000 subscribers.

Last June, the streaming service laid off 300 employees worldwide, about 3% of its workforce, to cut costs. It had already laid off another 150 workers in May.

The company will also reduce new programming with a focus on "quality" over quantity, the report adds. In some cases, budgets for new programs will be reduced by up to 25%.

Meanwhile, competing streaming services such as HBO Max, Disney+, and Amazon Prime Video, are looking to capture those subscribers who have abandoned Netflix.