Netflix will announce its second-quarter results of the year 2022, on 19 July – forecasts tell that the second-quarter earnings will be 3 dollars per share, indicating a 20 percent decline since last year.
The company reportedly lost subscribers in the first quarter of 2022 – this was the first time this has happened in any quarter over a decade. According to CNN, Netflix shares have fallen 71 percent so far this year, with the streaming provider losing billions of dollars in market value and firing hundreds of employees.
Losing subscribers wasn’t the only problem that turned Netflix‘s world upside down: the second quarter’s weak outlook shocked investors, since Netflix predicted the loss of an additional 2 million subscribers, due to fierce competition, the negative impact of account sharing, weak economy, decades of inflation and the Russian-Ukrainian conflict.
Netflix‘s closest competitor is Disney, benefiting from the growing popularity of Disney+ thanks to its strong original/licensed contents and cheaper package offerings. The company is also expanding on international markets: they had 137.7 million subscribers on 2 April 2022, compared to 103.6 million on 2 April 2021.