Netflix Reports Almost 16 Million Added Subscribers in Q1 Due to Stay At Home Orders
By Allyson Vannatta, Senior Writer
Netflix reported an astounding net of 15.77 million added subscribers over the first quarter of 2020, mostly due to stay-at-home orders because of the coronavirus.
In their quarterly stakeholder letter, Netflix said, “[O]ur membership growth has temporarily accelerated due to home confinement.”
The letter continued, “Some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter.”
The streaming giant reported it had 182.9 million subscribers worldwide at the end of Q1. That’s a 22.8% increase from the same time last year.
Before the COVID-19 pandemic, Netflix predicted they would add around 7 million subscribers in Q1 this year. Even with exploding numbers, Netflix says they expect to see slower growth when life returns to normal.
Netflix also provided viewership figures for some of their original content to go along with announcing their Q1 earnings.
The record-breaking growth seen in Q1, though, is “temporary,” according to Loup Ventures Managing Partner Gene Muster.
Muster told Yahoo Finance that Netflix could make it through the pandemic “Without producing new content due to its ‘deep catalog’ compared to most other streaming services.”
He continued saying what Netflix really needs to focus on is keeping membership in the long run.
The streaming service marketplace continues to become more crowded with Hulu, Disney+, Amazon Prime Video, Apple TV+, Quibi, and new editions like NBC’s Peacock and WarnerMedia’s HBO Max coming soon.
Disney+ has not announced any new figures since previously reporting the service hit 50 million global subscribers earlier this month.
The same goes for Disney owned Hulu. The latest numbers for Hulu show the service to have just over 30 million subscribers.