Netflix is one of the few organizations that has benefited from the global pandemic, holding billions of consumers at home with nothing but entertainment, but the problem is how long will it last?
While much of Netflix’s recent boom didn’t begin until mid-March, where more people have been forced to stay home to help curb the outbreak of the novel coronavirus, a string of successful, original shows and movies helped Netflix raise first-quarter subscribers. Streaming app gained 15.8 million subscribers, more than double the planned 7.2 million, a year-over-year increase of over 22 per cent. It currently has 182 million weltwide users. The company also had quarterly sales of $5.77 billion versus the projected $5.76 billion.
“At Netflix, we are well aware that we are lucky to have a brand that is much more important to customers who are constrained at home and that we can work globally in the short to medium term with limited interruption”, said Netflix official.
A steady supply of new content provides a leg up for over other subscription platforms. One of the greatest benefits of streaming app over its rivals is that it fits directly into its delivery strategy; since full show seasons are released at once, Netflix has to have entire seasons ready to go.
The more Netflix retains a target market due to the coronavirus pandemic, and as long as Netflix will afford to deliver new content, the business will continue to have a significant profit.