It should come as no surprise to anyone that Netflix is doing great during the ongoing COVID-19 pandemic. Despite economic recovery around the world, many people still work from home, giving them much more free time to watch content on digital video platforms.
In the first quarter of 2020 alone, Netflix managed to attract an astounding 15.8 million new subscribers, and now that the second quarter is over, that number has increased to 26 million new paid users. For reference: in 2019, it took Netflix an entire year to reach the same numbers.
It is difficult to predict whether Netflix will be able to continue to grow as rapidly throughout the remainder of 2020. As more people return to work and their free time shrinks, Netflix may experience some churn. The company’s management really gives very modest forecasts for the third quarter of 2020.
Netflix plans to grow its subscriber base by only 2.5 million over the next three months. The platform believes strong Q1 and Q2 results will reduce demand in the second half of 2020. In other words, almost everyone who could subscribe to the service as a direct result of the COVID-19 quarantine measures has probably already done so.
But in terms of Netflix’s impressive subscriber numbers, it’s also worth saying that not all was rosy for the company in the last quarter. Revenue for this period fell short of expectations (despite overall growth compared to the same period last year), and the impact of COVID-19 on the production schedule for new series and films should not be discounted either. The virus has proven so devastating in this regard that Netflix has postponed many of its shows until late 2021.
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