Netflix, in its newest letter to investors, introduced that it passed 200 million paid members in 2020.
The popular streaming service added a whopping 8.5 million new subscribers within the fourth quarter alone and 37 million over the entire year – which stands as a report for the company. The largest leap in sign-ups occurred in March when nations started implementing lockdowns to deal with COVID-19.
In a press release to CNN, Netflix acknowledged, “2020 was an extremely tough year with an extraordinary loss for thus many households, new restrictions that none of us have ever needed to live with before and great uncertainty. We’re enormously grateful that in these uniquely difficult occasions we have been able to provide our members all over the world with a supply of escape, connection, and pleasure whereas persevering with to construct our business.”
Netflix mentioned that the revenues it generated meant that it believes it no longer needs to “increase exterior financing for our day-to-day operations”. For 2021, it expects that free money move can be around break-even. Because it generates extra money, it should discover returning cash to shareholders through inventory buybacks as it did between 2007 and 2011.
Relating to the explosion in new streaming suppliers, Netflix mentioned that its technique going ahead is easy; it desires to “enhance Netflix each day to better delight our members” to turn out to be their first desire for a streaming supplier.
To “delight” its customers, it will need attractive content material to observe on the platform. Based on knowledge from Google, 90% of the highest ten looked for TV exhibits have been on Netflix however solely 20% of the highest ten movies have been on the platform. To spice up attraction for many who desire movies, the company mentioned that it’s going to launch one new authentic movie each week throughout 2021.
As for 2021, Netflix believes it should add six million new customers within the first quarter, a drop year-on-year because of the lockdowns which brought about an unusually massive spike. The predictions of additional development brought about its share value to rocket.