Netflix subscribers surge as millions stream shows during coronavirus lockdowns
Streaming giant Netflix signed up 15m new subscribers in the first quarter of the year, double the number it expected, as millions of viewers binged boxsets at home during global coronavirus lockdowns.
The surge in subscription numbers was more than double the 7m net new subscribers that the company had forecast. The company also beat expectations to add 8.8m new users in the fourth quarter of last year.
The US company reported revenue of $5.77bn in the quarter and earnings per share of $1.57.
Netflix shares jumped more than five per cent in after-hours trading.
Netflix has so far been viewed as one of the few companies to be largely unaffected by the coronavirus crisis. Its stock hit record highs last week as investors expect millions of viewers binge on boxsets during the coronavirus lockdown.
However, there is a risk that a prolonged lockdown could make it difficult to produce new prime content. The company said that the production shutdown meant some cash spending on content and some title releases will be delayed.
The latest earnings also come amid escalating competition from streaming rivals. Disney’s new streaming service Disney Plus has already signed up 50m subscribers, compared to Netflix’s 183m.
The company also expects subscriber growth to slow as lockdowns are lifted across the world.
“Our content competitors and suppliers will be impacted about as much as we are, in terms of new titles,” the company said in a letter to investors.
“Since we have a large library with thousands of titles for viewing and very strong recommendations, our member satisfaction may be less impacted than our peers’ by a shortage of new content, but it will take time to tell.”