Net­flix boom won’t have a happy end­ing

The Daily Telegraph - Business - - Front Page - By James Tit­comb in San Fran­cisco

‘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

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