Netflix is one of the streaming services services which saw the number of its subscribers increase significantly during the coronary period.
The Netflix present explosive increase in subscribers in the first quarter of 2020, exceeding all expectations and mispronouncing initial predictions. Subscribers have increased by 15,7 million and revenue reached $ 5,76 billion (increased by 27% compared to the first quarter of 2019). Initially, experts said they could not be sure, as they could not know how the pandemic the profits.
The majority of subscribers came from Europe (about 4,4 million), while 2,3 million from USA and Canada.
The increase in subscribers is obviously due to incarceration of people due coronavirus. So it can be temporary. People stay home and are looking for ways to spend their time happily. For this reason, many of them have turned to streaming services.
In his letter to the shareholders, Netflix said it expects an increase in viewership and subscriptions this quarter, but warned that there could be a reduction once people get out of quarantine.
Netflix said expects 7,5 million new subscribers worldwide, in the second quarter of 2020, but warned that these are "speculations", as we do not yet know when the measures for quarantine.
The company also said that the shows and movies that were expected to be released in the second quarter were likely to be released as planned, as their recording had already been completed.
The company said it had reduced the quality of streaming in countries where it was requested. Both Netflix and YouTube announced the reduction of quality in Europe for the smooth operation of the Internet.
However, Netflix will have some issues as production for some new programs has been postponed. On the other hand, the company has pledged to spend $ 150 million to help the film industry in the crisis. This includes a $ 100 million fund to help workers in the television and film industry affected by the crisis and a $ 30 million donation to non-profit organizations.
Netflix has also released some numbers showing the views of some popular programs for the quarter. About 30 million households attended the dating show "Love is Blind" and 64 million watched the documentary series Tiger King. The movie "Spenser Confidential" was shown to 85 million households. Netflix changed its display of measurements in January. A user only needs to watch one program for two minutes. That's enough to be measured by Netflix as a viewer.
Before the crisis, one of the biggest issues for Netflix was growing competition in streaming, from Companies like the Disney.
Netflix CEO Reed Hastings said he was impressed with Disney + 's performance.
Hastings said Netflix is looking to boost content for kids and families to compete with Disney's impressive "family-friendly" programs.