Netflix Reports Massive Q1 Growth With 16 Million Subscribers Globally

April 22, 2020
Posted in Tech
April 22, 2020 Tumelo Moloi

Netflix previously told its investors that it expected seven million new subscribers in Q1, but those estimates came before COVID-19 led to many staying indoors and at-home. “Our membership growth has temporarily accelerated due to home confinement,” Netflix said in its latest shareholder letter. Series like the very-viral Tiger King helped in luring 34 million unique viewers in the show’s first 10 days, and potentially many new subscriptions, becoming one of the streaming giant’s biggest-ever original shows.

The company did note however that due to the shutdown of Hollywood productions “some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter.” Another negative consequence Netflix didn’t foreshadow is that the U.S. dollar has sharply increased over the past several months, leading to repressed international revenue. Ultimately, however, Netflix doesn’t seem to be losing: the company’s stock has reached all-time highs this week, with after-hours trading on Tuesday up as much as 4.8 precent to $458.80 USD per share.

Netflix previously told its investors that it expected seven million new subscribers in Q1, but those estimates came before COVID-19 led to many staying indoors and at-home. “Our membership growth has temporarily accelerated due to home confinement,” Netflix said in its latest shareholder letter. Series like the very-viral Tiger King helped in luring 34 million unique viewers in the show’s first 10 days, and potentially many new subscriptions, becoming one of the streaming giant’s biggest-ever original shows.

The company did note however that due to the shutdown of Hollywood productions “some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter.” Another negative consequence Netflix didn’t foreshadow is that the U.S. dollar has sharply increased over the past several months, leading to repressed international revenue. Ultimately, however, Netflix doesn’t seem to be losing: the company’s stock has reached all-time highs this week, with after-hours trading on Tuesday up as much as 4.8 precent to $458.80 USD per share.

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