Netflix Surpasses 200 Million Subscribers, Says It no Longer Needs External Financing
Streaming giants, Netflix has passed another major milestone. The company reported on Tuesday that its subscriber base has surpassed 200 million users around the world.
According to the report, the company added a total of 8.5 million paid net subscribers in the fourth quarter to hit a total of 203.6million paying subscribers in 2020.
This comes after spectacular growth in the first half of 2020 and a less than stellar third quarter in terms of subscriber gains (2.2 million).
Netflix added a record-breaking 37 million paid memberships in 2020.
Recording breaking New Shows
The fourth quarter was however different as new shows like Emily in Paris and The Queen’s Gambit found a sizable fan base right away. The Queen’s Gambit was especially outstanding, notching more than 62 million households views within the first four weeks of its release, making it the second most-watched limited series on the platform.
The company has projected other new shows like the French heist series Lupin and Bridgerton to amass more than 63 million household views within its first four weeks.
Suggested read: Lupin, Bridgerton; Top 5 New Netflix Series to Watch This Week
Growing competition
Even as the number of subscribers keeps rising, competition is also increasing, with the likes of Disney+, HBO Max and Peacock all arriving with backing from deep-pocketed companies.
However, strong returns for popular shows like The Crown helped make Netflix a destination streamer, even amid the increased competition. The Crown’s fourth season remains one of the most-watched shows for weeks.
over 100 million people have watch The Crown since it launched.
The company also noted that its original TV shows accounted for nine of the top ten most Googled series in 2020.
Netflix will no longer borrow
Another major announcement in the earnings report is Netflix executives revelation that the company has reached a financial milestone and no longer needs to source for funding.
According to the report, the company would not “need to raise external financing for our day-to-day operations,”. This is a significant move for the streaming giants.
In the last 10 years, the company has borrowed over $16 billion to invest in its huge content library. The funds were used to cover both its entertainment productions and its business costs like payroll and marketing.
After getting crossing 200 million subscribers, Netflix’s operating profit has expanded significantly, jumping 76% in 2020 compared with 2019.
Netflix achieved $25 billion in annual revenue in 2020, according to the earnings report.
The company also said it would consider buying back some stock which would help in lifting the value of its shares. Following the release of the report, Netflix’s stock jumped more than 12% in after-hours trading.
In summary
The current uptick in Netflix subscribers is a sign of what the company can achieve with a string of must-watch contents. The company has revealed to add more with over 500 titles in post-production or preparing to launch.
But even as it celebrates passing the 200 million mark, the platform is also acknowledging that 2021 likely won’t see as many net subscriber gains every quarter.
It anticipates adding 6 million total subscribers in the first quarter compared to last year’s 15.8 million which included the impact from the initial COVID-19 lockdowns.
