fbpx
How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more The United States Contributes USD $223 Million to Help World Food Programme (WFP) Save Lives and Stave Off Severe Hunger in South SudanRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more Senegal and Mauritania Are Rich in Resources, Poor in Infrastructure, Now Is the Time to Change That Read more Madinat Jumeirah: Dubai’s Stunning Four Hotel Beach Resort Offers Unirvalled Benefits for Summer StaycationsRead more

Netflix keeps growing in pandemic, tops 200 mn subscribers

show caption
Netflix kept ahead of streaming rivals competing for viewers stuck in their homes during the pandemic, adding some 8.5 million subscribers in the past quarter to boost its total to more than 200 million./AFP
Print Friendly and PDF

Jan 20, 2021 - 08:00 AM

SAN FRANCISCO — Netflix on Tuesday topped subscriber growth expectations in the past quarter, keeping ahead of new streaming rivals competing for viewers stuck in their homes during the coronavirus pandemic.

The streaming television leader added some 8.5 million paid subscribers in the quarter to reach 203 million, topping 200 million despite recent price hikes, its quarterly earning update showed.

“Covid-19 has accelerated that big shift from linear to streaming entertainment,” Netflix chief financial officer Spencer Neumann said on an earnings call.

“So, the underlying long-term looks good.”

The company’s cash flow was so strong that it will no longer borrow money to pay for operations, and is considering starting to buy back shares, according to a letter to investors.

Netflix shares jumped more than 12 percent in after-market trades following the release.

Profits dipped to $542 million in the fourth quarter, compared with $587 million in the same period in 2019. But overall revenue in the quarter surged 21.5 percent to $6.6 billion.

For the full year, Netflix added a record 37 million paid memberships, according to the earnings report.

“We’re enormously grateful that in these uniquely challenging times we’ve been able to provide our members around the world with a source of escape, connection and joy while continuing to build our business,” Netflix said in a letter to investors.

Paid membership increased 23 percent in the final quarter of 2020 when compared with the same period a year earlier, but average revenue per membership was flat, according to the Silicon Valley-based company.

While Netflix raised rates slightly in the US late last year, the majority — some 83 percent — of its new subscribers were from outside North America, the earnings report indicated.

Films to launch 

Netflix has invested heavily in original shows and films to make itself a must-have service in the increasingly competitive streaming market.

“It’s super impressive what Disney has done,” Netflix chief executive Reed Hastings said on the call.

“It is going to be great for the world that Disney and Netflix are competing show by show, movie by movie.”

While Apple, Comcast, Disney and others have fielded streaming services, Netflix thus far “has been a clear winner,” according to eMarketer analyst Eric Haggstrom.

Netflix executives said their productions are back up and running in most regions after being derailed by the pandemic.

Netflix boasted having more than 500 titles in post-production or being readied for release on the service, with the plan being to launch at least one new original film weekly.

Already the master of the pandemic-era movie landscape, Netflix last week offered a preview of upcoming 2021 releases, a list with no fewer than 70 star-studded feature films.

From drama, comedy and science fiction to horror and even Westerns, the slate will take in every major film genre before the year is out, with some releases poised as potential competition for major awards.

Among the most-anticipated titles is “Don’t Look Up,” from filmmaker Adam McKay of “The Big Short” and “Vice” fame and starring Leonardo DiCaprio.

“The Harder They Fall,” a Western co-produced by Jay-Z and with a primarily Black cast including Regina King and Idris Elba, also promises to be one to look out for.

The announcement — via a brochure on the streamer’s website — was accompanied by a short video presented by “Wonder Woman” star Gal Gadot, “Jumanji” lead Dwayne Johnson and “Deadpool” actor Ryan Reynolds.

Johnson, Gadot and Reynolds will appear in “Red Notice,” an action film with a $160 million budget, according to US media.

ZONNTECH.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.