Where Pandemic has toppled the world’s economy badly, some sectors, however, still are flourishing during the lockdown imposed across the world. The world’s entertainment and tourism industries have suffered the hardest blow.
However, Netflix is one online entertainment platform that is witnessing a major bloom during the lockdowns. Its subscriptions have gone rising high as people seek more entertainment while locked at home.
It has been reported that the streaming service added 15.8 million customers during the first quarter, double the number expected by Wall Street – taking the total to 182.9 million at the end of March.
This is the biggest three-month gain in the company’s 13-year history, making Netflix the first viewer’s choice service during a lockdown.
Netflix was helped by demand for series such as the true-crime documentary “Tiger King” and reality show “Love is Blind” as well as Spanish-language thriller “Money Heist”.
Revenues rose 28% compared to the same period last year to $5.77bn while profit more than doubled to $709m.
It said it expects to add 7.5 million more users in the current April-June period though admitted this was “mostly guesswork” given uncertainty about when lockdowns might be lifted.
Netflix had to suspend its production of new series during coronavirus, however, there is an increase in the membership and viewership of Netflix during the pandemic.
Meanwhile, its income from outside the US has been squeezed because of the rise in the dollar, seen as a safe haven, versus other currencies.
Netflix has bucked the trend among pandemic-battered US stocks over the last couple of months, gaining 11% over the period since 19 February when the S&P 500 Index has tumbled by 19% from its record high.
On the other hand, the company has admitted that their viewership will go down, once the home confinement will end. However, it is facing a strong competitor in the market after the debut of a rival Disney+.
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