LOS GATOS, Calif. — Netflix’s paid memberships in the U.S.-Canada (UCAN) region shrank by 430,000 in the second quarter of 2021, according to financial results released by the streamer yesterday.
Netflix now has 73.95 million paid subscriptions in the UCAN market. The company reported US$3.2 billion in revenue for the UCAN region during Q2 2021, compared to US$2.8 billion in Q2 2020.
“As expected, Q2 paid memberships in the UCAN region were slightly down sequentially (-0.4m paid net adds),” reads Netflix’s letter to its shareholders discussing its Q2 2021 financial results. “We believe our large membership base in UCAN coupled with a seasonally smaller quarter for acquisition is the main reason for this dynamic. This is similar to what we experienced in Q2 ’19 when our UCAN paid net adds were -0.1m; since then we’ve added nearly 7.5m paid net adds in UCAN.”
Globally, the company’s total revenue reached US$7.3 billion for the second quarter of 2021, a 19% increase over the US$6.1 billion in revenue it reported in the same quarter of 2020. Operating income in Q2 2021 increased 36% year-over-year to US$1.8 billion, compared to US$1.4 billion in Q2 2020.
“Revenue growth was driven by an 11% increase in average paid streaming memberships and 8% growth in average revenue per membership,” reads Netflix’s letter.
Netflix added 1.5 million paid memberships globally in the second quarter, which was slightly ahead of its guidance forecast of 1 million net additions. The Asia-Pacific region accounted for about two-thirds of the company’s global paid net adds in the quarter.
Netflix’s global paid memberships now total 209 million as of the end of the second quarter of 2021.
To read Netflix’s letter to shareholders and to access its Q2 2021 financial statements, please click here.
