Has Pandemic Affected Netflix in 2020 – Why and How?
COVID-19 pandemic has increased the subscription ratio of the streaming master Netflix. Netflix quarterly updates show that it added 8.5 million paid subscribers. Furthermore, the company has attained 203.66 million worldwide.
These Netflix figures are according to 2020. Despite inflation in every country, COVID-19 has multiplied massive shifts from linear to streaming enjoyment. Hence, the company has become independent of borrowing for its operating costs. Moreover, Netflix shares face a 12% hike in the after-market trade.
Netflix’s profit dipped in the fourth quarter of 2020 compared to 2019 in the same period. However, there was a rise in the overall revenue of the company. According to an earning record of Netflix, there was an addition of 37 million paid memberships in the entire year.
Why Pandemic Affected Netflix?
The people worldwide were stuck at home during the lockdown and waiting for the pandemic to end. The time they spent commuting, grocery shopping, and waiting for doctor’s appointments has reduced significantly or become zero. Therefore, most people started using this time in their virtual entertainment like Netflix, Amazon Prime, YouTube TV, etc.
Mainly, Netflix got more boost from international subscribers than from the US. Asia Pacific region has the most subscription in the fourth quarter of 2020. One million new subscribers joined Netflix.
How the COVID-19 Affected Netflix?
Similarly, the retention and engagement in comparison with 2019 increased in 2020, according to the Netflix Quarterly report.
Netflix is now in the race for more and better content at a faster rate of production. As currently, the people are primarily working from home, so they get bored often. Therefore, they start watching movies and finish them more quickly than in 2019.
So, Has Pandemic affected Netflix in 2020 – Why and How? Pandemic has positively affected Netflix by boosting its memberships. Through this increase, the company has reached its goal earlier than expected. Similarly, this has also raised the shares of Netflix significantly.