Netflix sees ‘coronavirus boom’ as subscriber numbers soar

Netflix Inc (NASDAQ:NFLX) has seen its subscriber numbers boom in the first part of 2020 as the coronavirus pandemic drives a surge in demand for streaming services. Overnight, the firm reported it added 16mln new subscribers in the first quarter of 2020, its biggest-ever quarter for paid net additions and more than double forecasts. READ: Netflix offers gloomy outlook for 2020 despite strong end to 2019 Meanwhile, the group reported earnings for the quarter of US$709mln, up from US$344mln a year ago, as revenues climbed to US$5.8bn from US$4.5bn. Spending on operating activities, meanwhile, fell to US$260mln from US$380mln year-on-year as the pandemic forced the company to pause production. The popularity of recent series, notably crime documentary Tiger King, has helped Netflix stave off increased competition from rivals such as Amazon Inc’s (NASDAQ:AMZN) Prime Video service and the recently launched Disney Inc (NYSE:DIS) streaming offering, Disney+. “A world in lockdown means we’re consuming more TV, and has helped Netflix win an impressive number of new subscribers. The business model demands that Netflix leverages its operations by servicing an increasing number of paying users, so it’s particularly encouraging to see international additions rising, as Netflix is running out of room to grow in its domestic market”, said Hargreaves Lansdown analyst Sophie Lund-Yates. However, the analyst warned that while the extra subscribers may be a boon in the short-term, paused production meant Netflix’s content library “isn’t being replenished as usual”. “It’s too soon to know what the longer term impact will be, but in order to stay ahead Netflix will need to make sure it’s firing on all cylinders again as soon as it’s safe to do so”, she added.