Netflix reported its second straight quarterly drop in subscriber growth, losing almost 1 million subscribers between April and July.
It was not as bad as the streaming giant previous prediction of a 2 million subscriber loss.
Netflix reported its first subscriber loss since 2011 back in April, which was followed by hundreds of job cuts.
The first quarter of 2022 saw over 200,000 users choosing to leave the service.
“Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content and marketing as we’ve done for the last 25 years, and to better monetize our big audience,” Netflix said in a letter to investors.
The company also recently announced a cheaper version of its platform that will be their first ad-based subscription.
More competition, the state of the economy and password sharing have been cited among the reasons for the loss in subscriber numbers.
Executives said in a call with investors that they would be investing more into original content, with $17 billion forecasted to be spent on Netflix-made productions in the next few years.
“It’s important that Netflix is seen as a tremendous value in tough economic times,” said CEO Ted Sarandos.
“We have a lot of great new content coming out.”
Their letter to shareholders also contained statistics about Netflix’s most popular shows, including Stranger Things.
The fourth season was the biggest season of English TV ever on the platform, generating 1.3 billion hours viewed in the fist four weeks of its release.
The shareholder letter said Netflix is “confident and optimistic about the future”.
“Reaccelerating our revenue growth is a big challenge,” the letter said.
“But we’ve been through hard times before. We’ve built this company to be flexible and adaptable and this will be a great test for us and our high performance culture.”