For comparison,– which was the breakthrough in the so-called “streaming wars” when it launched a parade of new rivals on Netflix – in its first year it reached 86.8 million subscribers. At Disney The service, which is streaming while Netflix but operates in the United States alone, has 38.8 million subscribers. has only 12.6 million active accounts.
On Tuesday, Netflix said subscribers increased by 8.51 million between October and December to reach a total of 203.66 million, according to its report for Tuesday’s fourth-quarter results. This exceeds Netflix’s October guidelines for adding 6 million new members. According to Thomson Reuters, analysts expected an average of about 6.1 million members.
Investors flocked to Netflix shares due to unexpectedly strong growth, as well as news that Netflix’s finances were solid enough that the company would consider buying back shares and stop borrowing money to fund its day-to-day operations. Shares jumped 14% to $ 571.18 in the last trading on Wednesday.
Although Netflix’s growth slowed to a creep in the previous quarter, recent results limit a year of growing popularity for Netflix as many households manage to have more fun at home. Netflix added more new subscribers in the first three months of the year, for example, than ever before, a record growth that was taken as a bell for the popularity of streaming video duringpandemic. With its eye-catching size of its original software pipeline and stream-at-home model, Netflix was ideally positioned to support new shows and movies for people left at home and desperate for fun.
But even Netflix warned that its popularity at the beginning of the year was likely to attract demand, which it would normally expect to materialize later.
However, Netflix has already shown signs that its growth has changed in recent times. In October, it ended its long-standing supply practiceto new subscribers. And later this month, in the United States for both its most popular standard plan and its premium plan of a higher class. The price boom, probably unwelcome by some subscribers, was widely expected by investors and analysts to come sometime in 2020 or possibly 2021. But the fact that it came sooner rather than later suggested that Netflix was enough. confident in its growth trends to start charging more members despite countless new rivals.
“It’s still astounding to see how the COVID-19 pandemic is nothing but a great boon to the company’s operations,” MoffettNathanson analyst Michael Nathanson said in a note on the results. “Because much of the world is still locked in its homes, has nowhere to go and nothing to spend its money on, streaming services from consumers has been accelerating for years …. While the pandemic is clearly working for Netflix The company has been preparing for first world streaming for more than a decade. “
Lupine’s surprised blow
The unprecedented worldwide scale of Netflix is expanding the programming audience, which would not normally be considered a sure hit. For example, Netflix’s latest hit show is, a French-language robbery series that brings together audiences unseen for The Witcher’s original Netflix show in December 2019. Netflix said Tuesday it predicts Lupine will be watched by more than 70 million accounts in the first four weeks of release . The Witcher – Netflix’s most watched original series since the company began reporting these statistics – has reached 76 million accounts.
But Lupine’s appeal crosses language barriers, making it the most popular non-English title on Netflix to date. Previously, La Casa de Papel – a Spanish crime thriller titled Money Heist for English-speaking audiences – had run as Netflix’s largest non-English language show. But the third season of La Casa de Papel was watched by about 65 million accounts, compared to Lupine’s projected 70 million.
Lupine ranks second in the company’s popularity charts in the United States, Netflix said, and ranks first in dozens of other countries, including Brazil, Argentina, Germany, Italy, Spain, Poland, Vietnam and the Philippines (and probably France as well). ..).
Ted Sarandos, co-CEO of Netflix and the company’s content manager, said Netflix’s “everything you can eat” subscription model reduces the risk for members to “be much more adventurous about what they watch.” Subscribers can hear about a popular show like Lupine, which is already included in their subscriptions, and try it out despite the previous hesitation about foreign language programming.
“They press the game and 10 minutes later they suddenly like foreign language television. So it’s a really amazing evolution,” he said Tuesday night during a conversation to discuss the results. “You can throw away a lot of preconceived notions of what works and what doesn’t, because they’re mostly driven by business trends, not consumer trends.”
Netflix execution by numbers
In the United States and Canada, its largest single region, Netflix added 860,000 new streaming customers, a total of 73.9 million. In Europe, the Middle East and Africa, subscribers grew by 4.46 million to 66.7 million. In Latin America, subscribers increased by 1.2 million to 37.54 million. And in the Asia-Pacific region, Netflix is reserving 2 million new members to reach 25.5 million.
Looking back to the first quarter, Netflix expects to add 6 million streaming members worldwide. Analysts agree that Netflix predicts about 8 million. Netflix also forecast $ 2.97 per share earnings in the first quarter. On average, Wall Street analysts tracking Netflix expect $ 2.07.
Overall, Netflix reported fourth-quarter earnings of $ 542.2 million, or $ 1.19 per share, compared to $ 587 million, or $ 1.30 per share, a year earlier. Revenue rose 22 percent to $ 6.64 billion.
Analysts expect an average earnings per share of $ 1.39 – compared to Netflix’s target of $ 1.35 – and revenue of $ 6.1 billion.