In the past three months Netflix amassed over 10 million new subscribers as a result of the coronavirus pandemic. This is in comparison to 28 million subscribers for the entire year of 2019.
However, according to a BBC report that “Growth is slowing as consumers get through the initial shock of coronavirus and social restrictions.” The company is warning investors that subscriber growth will slow and to take caution before jumping into investment decisions with both feet.
It will probably still be difficult for investors to ignore the incredible numbers reported in the firm’s quarterly update:
- Increased revenue nearly 25% to $6.1bn
- Increased quarterly profits to $720m in comparison to $271m a year ago
- Nearly 16 million new accounts in first three months of the year
In contrast, however, the streaming service said that it has halted “almost all” filming around the world. The media juggernaut has reportedly stuck to its release schedule through June and “…has reportedly been acquiring other movies to keep its offering fresh. But it said future membership growth could be hurt by delays to upcoming seasons and shows.”
“Netflix is and will continue to be the media company least impacted by Covid-19,” said eMarketer analyst Eric Haggstrom. “Their business is a near perfect fit to a population that is suddenly housebound.”