Netflix passes 200 million paying subscribers worldwide
In two years, the streaming leader has almost doubled its number of subscribers: from 111 million at the start of 2018 to nearly 204 million at the end of 2020
The leader in paid video streaming announced on Tuesday that it had 37 million additional subscriptions throughout 2020, including 8.5 million in the fourth quarter, a sign that the platform continues to gain market share even if it is more at the same rate as last spring.
Strong stock market rise
"We are very close to achieving a positive cash flow," the group further announced in its earnings release. “We believe that we no longer need external investments to finance our day-to-day operations”. Sign of investor satisfaction, the title of Netflix jumped Tuesday by more than 10% on Wall Street during electronic exchanges after the close of the stock market.
In the fourth quarter of 2020, the California-based company posted a net profit of $ 542 million - down $ 40 million from a year ago, on revenue of $ 6.6 billion, up to $ 21. 5%. In two years, Netflix has almost doubled its number of subscribers: from 111 million at the start of 2018 to nearly 204 million at the end of 2020. Above all, the average revenue per subscription has increased from 9.88 to 11.02 dollars.
In 2020, like many other tech giants, the platform has benefited greatly from travel restrictions imposed in various countries to fight the pandemic. But this also means that competition has increased, with Disney +, which has exceeded 85 million subscribers in one year, but also with all video content services, professional or not ...
“Netflix is ending its best year and is expected to grow further in 2021, with major releases already planned,” commented Eric Haggstrom, an analyst at eMarketer. “For now, he's the big winner in streaming battles”. The company also wants to prove that it does not depend on its historical markets: more than 80% of the additional subscriptions taken out in 2020 were taken outside North America. For the first quarter of 2021, it plans to gain 6 million new subscribers.