Streaming trailblazer, announces there are more than 10 million subscribers new on Netflix. CEO Reed Hastings announced, that the company has gained more than 26 million new users in the first half of current year. Which is almost equal to the new subscribers in whole 2019. Ted Sarandos, Chief Content Officer accompanied CEO Hastings in the announcement. He is named as co-CEO of Netflix, which will make him the probable successor when the founder “Reed Hastings” retires.
CEO Hasting also released a statement saying “Ted has been my partner for decades. This change makes it formal what was already informal, that Ted and I share the leadership of Netflix”. Moreover, the co-CEO will also join board of directors in the next meeting.
As the world is on the lockdown due to the pandemic and people are limited to their homes. These restrictions turned out to be a bonus for the streaming giant. As during April to June, company added 10.1 million new subscribers surpassing its own estimates. Taking the total number of worldwide Netflix subscribers to 193 million. Although company has undeniably shown a strong performance to be proud of. But the senior analysts still warn the investor that the growth will slow down. As Netflix own estimation for the third quarter of 2020 is 2.5 million new subscribers. As compared to 6.8 million in same quarter of the previous year.
Netflix is growing but
However, senior analysts say that even though Netflix new users are growing rapidly. But the company could not provide the clearer picture to its shareholders of how much the current COVID-19 situation is accelerating the business as the company could not achieve the estimated revenue. According to the letter to shareholders “As a result we expect less growth for the 2nd half of 2020. As we navigate through these turbulent circumstances. We are focussing on our members by continuing to improve our quality and bring new movies and TV shows to people’s screens”
Digital Market analysts say that the major aspect behind Netflix’s growth is its very long pool of movies and shows. It’s a challenge for Netflix that how long can the streaming pioneer, keep up its rapid pace of releasing new titles. As the pandemic has halted the production and pushed Hollywood in a shutdown state. Investors are worried that the company will have to hold back. The shareholder’s letter reads “For 2021, based on our current plan, we expect the paused productions will lead to a more second half weighted content slate in terms of our big titles, although we anticipate the total number of originals for the full year will still be higher than 2020”.
Unlike its competitors, Netflix does not only rely on old movies and shows. It also gives blockbuster originals and licenses content worldwide. Steve Nason, a senior analyst at Parks Associates says. “Netflix has been able to transform themselves as an original content powerhouse. They still have to keep that output up to an extent, especially with each of these new major competitors figuring out different ways to go about grabbing subscribers. The key thing is the exclusivity of it all.”
As the cinemas are shut and other Streamers like HBO, Amazon, Disney Plus etc. have only classic movies and TV shows to offer. Netflix has original Blockbusters of the season as “Extraction” and “Spenser Confidential”. And original production TV shows like “The Old Guard”, “The Umbrella Academy” and “13 Reasons Why” are an amazing hits.
Market Leader Gained The Most
Many investor argue that the company’s success and growth during the pandemic, is a result of it being a pioneer in the streaming industry. As the leader of the market, Netflix gained more than any other streaming company. Market analysts predict that Netflix is going to get one third of total streaming subscribers at the end of 2020. It is not that only Netflix is gaining subscribers and growing, this pandemic has helped the streaming industry grow. Most of the streaming companies old and new like Amazon Prime, HULU, Disney Plus have gained. Overall traditional TV industry is badly hit by the pandemic. As it is increasing the shift towards streaming platforms. Analysts believe that, even when the lockdown and restrictions are over, all the competitors will begin to scale up there services but Netflix will still be the number one stop for the Entertainment.
US and Canada are the base market for Netflix right now, with highest number of users in these two regions, but as the pandemic situation is easing in Europe and some parts of Asia, Netflix plans to resume its production to minimize the delays. As the company says its 2020 line up is intact. But the lineup for 2021 has hit some major delays. Taking most of the big shows and movies which were releasing in early 2021. Now will be releasing in the second half of 2021.