Netflix beats expectations while still losing almost a million subscribers

It was another rough quarter for Netflix — but not as rough as expected.

Netflix said Tuesday it lost 970,000 subscribers in the second quarter of 2022. That's the bad news. But the good news is this was much better than Netflix projected, as the streamer previously told shareholders it would likely lose two million subscribers this quarter.

The company also said Tuesday it doesn't expect this trend of losses to continue, forecasting a gain of one million subscribers in the third quarter of the year.

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When Netflix revealed in April it lost 200,000 subscribers, it was its first quarterly loss in over a decade, prompting existential questions about the future of Netflix and whether the company's business model is sustainable. Though the streamer lost subscribers again, the fact that it beat expectations should allay some of these concerns. The release of Stranger Things' fourth season was likely a major factor in this, as the hit series became the first English-language Netflix show to rack up one billion views.

Netflix announced plans to crack down on password sharing earlier this year in an effort to increase revenue, and this plan is still in the works. The streamer is now testing a crackdown in certain countries that involves prompting users to pay more to watch Netflix in "additional homes," and on Tuesday, Netflix said it aims to roll out an "easy-to-use paid sharing offering" sometime next year. The company will also launch a cheaper, ad-supported subscription tier in early 2023.