Pandemic and chill: Netflix adds a cool 16m subscribers
Netflix picked up nearly 16 million global subscribers during the first three months of the year, helping cement its status as one of the world’s most essential services in times of isolation or crisis.
The quarter spanned the beginning of stayat-home orders in the U.S. and around the world, a response to the coronavirus pandemic that apparently led millions to latch onto Netflix for entertainment and comfort when most had nowhere to be but home.
Netflix more than doubled the quarterly growth it predicted in January, well before the COVID-19 outbreak began to shut down many major economies. It was the biggest three-month gain in the 13-year history of Netflix’s streaming service.
The numbers - released Tuesday as part of Netflix’s first-quarter earnings report support a growing belief that video streaming is likely to thrive even as the overall U.S. economy sinks into its first recession in more than a decade.
“Our small contribution to these difficult times is to make home confinement a little more bearable,” Netflix CEO Reed Hastings said while speaking to investors during a video call from a bedroom.
Investor optimism about Netflix’s prospects propelled the company’s stock to new highs recently, a sharp contrast with the decline in the broader market.
Netflix’s shares initially surged in afterhours trading after the first-quarter report came out, although they soon fell back. One reason: The strengthening U.S. dollar will likely depress the company’s revenue from outside the U.S., which could dampen gains from some of its fastest growing markets. (AP)