During this period of lock-down, one company that is successful in its service business under such circumstances is Netflix. Approximately 16 million new Netflix subscribers has been reached in its first quarter. In total, Netflix has approximately 195.15 million subscribers worldwide.
Abrupt rise to Netflix subscribers
People are turning to Netflix more because no movie theaters nor sport centers aren’t open. Other events such as concerts and shows and movie theaters closures are also underway. As people stay indoors, streaming services give them more entertainment. All of this could be temporary once people get back to their daily lives and work schedules, but Netflix is taking huge advantage of this.
In fact, Netflix said it expects the number of viewings to decline and membership growth to slow when the home confinement ends. Netflix CEO Reed Hastings said they are not sure what the future holds. For example, Netflix is also experiencing disruption from the coronavirus, as it is clear that they are also working remotely. Most members of the animation production team projects in post-production, and writers all work from home. There is no fixed date for resuming production. All of this may have some effect on new content for the next three months. They are working hard to complete programs that are in the process of final editing.
Most of the growth in the Corporation’s subscriber base has occurred outside North America. Netflix reported that it has announced 2.3 million subscribers in the U.S. and Canada. Netflix gained in Europe, the Middle East, and Africa, 6.96 million subscribers. In addition, in Latin America 2.9 and the Asia Pacific, they reached 3.6 million subscribers. In total, approximately 16 million subscribers worldwide were added to Netflix’s portfolio. This means that most subscriptions have appeared outside of North America and most in Europe and the Middle East now.
Some of the original Netflix shows that have been ranked as the most-watched shows include Tiger King, Ozark, and Queen Gambit. So those are the programs that are the most-watched. Netflix’s share price has risen 34% since the beginning of the year, making the streaming service one of the few companies to see its shares appreciate since the start of the coronavirus crisis. Netflix also reported earnings of $5.7 billion in the first quarter, up from $4.5 billion in the prior year.
A tough opponent for Netflix
Netflix currently faces a strong competitor. Walt Disney’s Disney Plus started last November. Since their launch, their subscription has cost approximately $6.99 per month. It will keep increasing by $1 in March 2021. They have exceeded 73 million subscribers so far.
If you want to learn more about Netflix, check our other article on Netflix and its competitor.