Netflix boom won’t have a happy ending
‘Our strong first half likely pulled forward some demand from the second half of the year’
NETFLIX shares crashed last night as it revealed that the record growth the streaming giant has seen during the Covid-19 pandemic will not last.
The US company said that more than 10m households had signed up to its monthly service in the three months to the end of June, sending total subscriber numbers above 192m.
However, it forecast that growth would plummet to 2.5m subscribers in the current quarter, sending shares down by more than 10pc in after-hours trading in New York.
The figures suggest that while the outbreak has drawn more subscribers in the first half of the year, many of these viewers are simply signing up earlier than they might have.
“We’re expecting paid net adds will be down year over year in the second half as our strong first-half likely pulled forward some demand from the second half of the year,” the company said.
It came as Netflix revealed that its content chief Ted Sarandos would become co-chief executive alongside founder Reed Hastings. The company said revenues were up 25pc year on year. Despite the slump, shares have still risen by more than 40pc this year.
Television fans have taken advantage of lockdowns around the world to binge on Netflix shows such as British series ‘Sex Education’, boosting global subscriber numbers to 192m