How the Pandemic Helped Netflix

How+the+Pandemic+Helped+Netflix

via Wikimedia Commons

Netflix has grown with incredible speed due to the COVID-19 Pandemic. Many people have been looking for a place to get out of the boredom of the pandemic, and Netflix is there to fill the gap.  Netflix told the public that they have grown by 25 million (or more) subscribers throughout the pandemic. 

In Quarter one of 2020, Netflix’s Subscriber count skyrocketed. One of the main reasons that Netflix’s subscriptions increased by so much is because of the COVID-19 pandemic. People at home had nothing to do so they needed some sort of entertainment. In this case, they turned to Netflix. Netflix grew approximately by 16 million subscribers in Q1 of the pandemic. This increase in growth also propelled Netflix’s stock price more than 65% higher. Although, all good things have a downside and they worried that because of their insane growth, customers would lose interest and instead go to one of their many competitors such a Disney+, HBO Max, and Hulu. 

Netflix solved this problem in Q2 though, by going billions in debt and by buying bucketloads full of new and never seen before productions. Though the original rush of subscriptions was gone, Netflix still grew another 10 million subscribers in the second quarter of 2020 so far. In the US, the percentage of 10-hour viewership has soared from pre-COVID times 16% to 38% according to Jefferies analyst, Alex Giaimo. 

An advantage that Netflix has over other companies is the devotion of its fans. And according to a poll by Cowen, more than 55% of Netflix subscribers (in May 2020) said that they were willing to pay more for the subscription-based service compared to the 47% earlier in December. And of the people who watch Netflix for more than 7 hours a week, 60% said that they were willing to pay more in May to 52% earlier in December of 2019. 

One final advantage that Netflix has over other streaming services is that they had an arsenal of new shows and movies before COVID shut down production. Ted Sarandos, Netflix Chief Content Officer, said “Our 2020 slate of series and films are largely shot [We] are in post-production stages in locations all over the world. And we’re actually pretty deep into our 2021 slate. We don’t anticipate moving the schedule around much, and certainly not in 2020.” 

Because of the COVID-19 Pandemic, Netflix has grown in the millions. Netflix also now has a head-start on its younger competitors. They grew by another 25 million or more subscribers and Netflix fans are more devoted to Netflix than ever before.