Netflix’s subscriber growth slowed dramatically in the second quarter as the surge in streaming subscriptions from the COVID-19 pandemic petered out and the company considered novel ways to grow its business.

       The Los Gatos-based streaming giant added a mere 1.5 million new paid members globally in the second quarter, which is down 85% from the same period a year ago, when it reported 10.1 million subscriber additions.

       The firm also added 61% fewer subscribers than it did in the first quarter, when the company missed projections with 3.98 million new accounts. In the U.S. and Canada, Netflix lost about 430,000 paid memberships in the second quarter.

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       Although down significantly, the results were better than the 1.15 million subscribers Wall Street analysts had expected, according to FactSet.

       Pandemic restrictions drove millions of people to sign up for Netflix subscriptions to binge-watch their way through the public health crisis, resulting in record numbers for the company.

       But with in-person entertainment options open once again, analysts anticipate people will spend less time with Netflix than earlier in the pandemic. Restrictions also delayed the production of movies and TV shows that typically fuel Netflix’s growth.

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       Netflix’s revenue rose 19% in the quarter to $7.34 billion, compared with a year earlier. Net income was $1.35 billion, compared with $720 million a year earlier. Analysts had expected revenue of $7.32 billion. Netflix’s earnings of $2.97 a share were worse than the $3.18 analysts projected.

       With subscription growth slowing, streaming services are trying to grow by spending billions on exclusive movies and TV shows to draw viewers and get them so addicted they don’t cancel.

       The company is spending big on content to shore up its position in the increasingly crowded field of streaming video as competitors including Disney+, Hulu and HBO Max try to take market share. Netflix has said it plans to spend $17 billion on content this year.

       Although detractors say the company’s firehose strategy of producing content prioritizes quantity over quality, the service has created plenty of buzzy shows that have garnered critical acclaim.

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       Netflix scored 129 Emmy nominations for its shows, including best drama series nominees “Bridgerton” and “The Crown,” along with nods for “Cobra Kai,” “Emily in Paris” and “The Kominsky Method.” Netflix was barely topped by WarnerMedia’s combined 130 nomination for HBO and HBO Max.

       Last month, Netflix signed a multiyear deal for Steven Spielberg’s Amblin Partners to supply the streamer with multiple new feature films a year. The deal was notable in part because the relationship between Netflix and the Oscar winner was at one time more strained.

       Spielberg had in 2019 intended to propose rule changes at an Academy of Motion Picture Arts and Sciences board of governors meeting that would have required films to play in theaters exclusively for at least a month to qualify for the best picture Academy Award category. The changes never occurred.

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       Netflix has moved to diversify its business, as well. The company recently hired Oculus and EA veteran Mike Verdu to lead its efforts in gaming.

       “We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV,” Netflix said in its quarterly letter to shareholders. “Games will be included in members’ Netflix subscription at no additional cost similar to films and series.”

       The company in June launched an e-commerce website that sells Netflix merchandise and products based on and inspired by shows including “The Witcher” and “Lupin.”