According to an article by CNN, Netflix gained 16 million subscribers in the first quarter of 2020. Stay at home ordinances have led millions to stay at home, binging popular original docu-series like Tiger King and Love is Blind.
Netflix now has a total of 183 million subscribers globally. A spokesperson for Netflix said the platform plans to grow by an additional 7.5 million subscribers by the second quarter. The streaming giant’s first-quarter profit in 2020 more than doubled to $709 million from $344 million in the year-end quarter. This suggests that its revenue has increased by 28%, making it an astonishing $5.7 billion. Still, Netflix’s share price remained mostly unchanged in hours after trading.
Netflix has made clear to its employees that this growth is not unique to their specific platform. Many of Netflix’s competitors have reported higher viewing and increased membership growth. This growth, however, could potentially cause issues in the future. Higher-ups at Netflix are under the realistic impression that viewing and membership growth will likely decline as social distancing efforts decrease over time.
The company also got candid about potential disruptions to its business amid the pandemic, specifically in the realm of content production. Almost all filming has been temporarily halted worldwide, with the exception of a few countries like Korea and Iceland. Netflix, like other major content producers, has faced significant uncertainty as production and filming has been temporarily paused. With that being said, all scheduled releases for the second quarter will be released as planned. Luckily for Netflix, the company has access to a broad pipeline of content, many of which was either complete or in post-production in time for global travel and social restrictions. Still, amid all this uncertainty, Netflix remains optimistic about its future.