Netflix streaming service announced last week that it now had more than 200 million subscribers as it continues its low-price, binge-watching approach.
The digital industry flourished during the coronavirus pandemic and web streaming giant Netflix also got a major boost to grab more subscribers than projected, taking an enormous lead among competing streaming services such as Amazon Prime Video, HBO Max, HBO Now, Hulu, Apple TV+, Disney + and many more.
Quarterly earning update revealed that streaming TV leader Netflix bagged around 8.5 million paid subscribers into its system to hit 203 million subscriber count amidst recent price increase on its subscription.
Netflix Chief Financial Officer Spencer Neumann said on earnings call that Covid-19 has boosted that major change from linear to streaming entertainment.
The cash flow of the company was so high that it would no longer borrow money to pay for operations and, according to a letter to investors, is considering beginning to buy back shares.
Following the release, Netflix shares value increased by more than 12 percent in after-market trading.
In the fourth quarter, income declined to $542 million, compared to $587 million in 2019 in the same period. Yet the quarter’s total sales soared 21.5% to $6.6 billion.
According to the earnings report, Netflix added a record 37 million paying memberships for the full year.
“We are extremely grateful that we have been able to provide our members around the world with a means of escape, connection and joy in these uniquely difficult times, while continuing to grow our business”, Netflix said in a letter to investors
Paying membership in the final quarter of 2020 grew by 23% as compared to the same timeframe a year ago, but according to the Silicon Valley-based business, average revenue per membership was flat.
Meanwhile, Netflix increased prices marginally in the US late last year, the majority of its new subscribers came from outside North America, some 83%, the earnings report showed.