Netflix is showing growth in terms of subscribers despite the COVID 19 pandemic worldwide. Earlier, it was predicted that the platform may witness less growth as compared to the last year. However, Netflix has managed to gain 26 million subscribers since the start of 2020. In this way, the CEO of the company has announced that the second quarter of the year has registered 10 million Netflix subscribers. This number has ensured a significant amount of increase in revenue which has broken several previous records set itself by Netflix.
The news was broken along with the promotion of chief content officer Ted Sarandos. He would be working as CO-CEO of the company with the present CEO Reed Hastings. It would have generated more discussions unless the trading decline emerged last Thursday. There was a decline in the investors because of the fear pf slow growth in the later years of 2020. According to the experts, the decline in the investment can be observed as a disappointment in the outlook for new subscribers. Therefore, the company management has announced that they won’t take the early success in the year as a guaranteed growth for the whole season.
The increased followers of Netflix were announced on Thursday as they beat the projections made by Factset. Earlier, it was predicted that the company will fall below 8.5 million followers in the second quarter. However, the increase rate in the followers has proved that the platform is still the best choice for the users in order to watch content online. Overall, the total number of Netflix subscribers has passed the number of 193 million. Most of the experts consider the quality of the Netflix platform as the sole reason behind the consistent increase in its follower-ship. Netflix has the most number of subscribers present in the United States of America and Canada. The total of these two countries lies at a whopping 70 million. In this way, both these countries have become major target markets of the company in recent times.
The company has been successful in increasing its revenue as compared to previous years. According to the reports, Netflix has managed to raise 25 percent revenue this year. However, the other side of the news is that the revenue targets for the second quarter has been missed by the country. It is an undeniable fact that the company has to be proud of its workforce due to the remarkable performance of the first two quarters of the years. However, company management is still showing concerns over the next quarter to investors. Therefore, Netflix has set a target of 2.5 million subscribers in the third quarter. The target is way less than that of the 6.3 million subscribers gained by the country in the third quarter of the year 2019.
Netflix is looking to settle in its “New Normal” routine work at the moment. The term is used for the working patterns by the companies due to the outbreak of COVID 19 worldwide. In this situation, Netflix is facing challenges and as to answer at least two questions in future times. Firstly, how much the company will grow in the upcoming times in terms of subscribers and revenue. Secondly, how has the COVID 19 impacted the business of the Netflix due to disaster results it has over the economies worldwide.
To conclude, Netflix has managed to produce remarkable results in the first two quarters of the year. However, it is estimated that tough times are about to come for the company which will surely impact its business and growth for the rest of the year.