Netflix subscriber usage among its top 10 programs dropped around 4% in the second quarter, which ended June 30, compared with the previous-year period, according to new data from Piper Sandler analyst Thomas Champion.
Indeed, Netflix had a streaming hit with the fourth season of the original series “Stranger Things,” which tracked 7.2 billion minutes consumed across U.S. televisions a month ago. The tally is Netflix’s highest ever for an English-language show following the streamer’s global hit “Squid Game,” which tracked more than 1.6 billion hours in its first 28 days of release.
The analyst contends that while viewership of English-language programming increased 8% in Q2 over Q1, the initial response to “Stranger Things” was likely temporary.
“It’s possible COVID concealed an increasing crowded streaming market,” Champion wrote in a note.
Separately, the analyst believes Netflix could realize upwards of $1.4 billion in quarterly revenue from advertising. The streamer is planning to roll out a less-expensive ad-supported subscription tier by the end of the year. Champion said he believes the move could jumpstart sub growth, a good thing considering Netflix has projected an overall sub loss of 2 million in Q2.
Netflix reports second-quarter fiscal results on July 17.
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