Netflix reported its Q2 earnings Tuesday. In a letter to shareholders, the streaming giant reported that it added 1.54 million subscribers worldwide for the second quarter which ended on June 30.
Netflix saw an increase in revenue for the quarter, with an increase of 19% year over year to $7.3 billion, while operating income rose 36% year over year to $1.8 billion. Revenue growth was attributed to an 11% increase in average paid streaming memberships as well as 8% growth in average revenue per membership.
The company predicted the less than stellar numbers during its Q1 earnings report in April. In a letter to shareholders with that report, the company wrote that after an increase in subscribers during the pandemic, the following quarters would likely not look impressive in comparison. The streaming service was also forced to shut down production on original content during the pandemic.
“COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world,” the company said in its Q2 letter to shareholders Tuesday, repeating the messaging from Q1.
Source: Cord Cutters News