Netflix loses fewer subscribers than expected and says cheaper ad tier is coming in early 2023

▤ Summary

Netflix shares jumped after the company said it lost fewer subscribers than anticipated during the second quarter. Netflix had warned investors last quarter that it expected to shed around 2 million subscribers, but only lost around 970,000 during the three month period ending June 30. The company warned of the strengthening U.S. dollars impact on its international revenue, which makes up 60% of its top line. The dollars surge comes as the Federal Reserve hikes interest rates to fight four-decade-high inflation in the United States. It remains focused on content, offering big-budget films on its service rather than in theaters, and providing all episodes of new shows all at once for subscribers to binge.

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