A global pandemic and stay at home orders throughout the world have resulted in Netflix adding 15.8 million new subscribers in the last three months, more than double what Wallstreet was expecting. Netflix now has 183 million subscribers world-wide. Netflix reported 2.3 million new North American customers, 7 million from Europe and the middle east, 3.6 million from Asia and 2.9 million from Latin America.
Netflix announced it generated $5.77 billion in revenue for Q1 2020, slightly higher than analyst expectations and up from $4.52 billion from a year earlier. Profit rose to $709 million, close to double what profit was last year Q1 at $344 million. Netflix shares have risen by 34% in 2020, making it one of a handful of companies that are rising in value during the global Covid-19 shutdown.
"Tiger King," the bizarre Netflix original documentary was viewed by 64 million Netflix households and 30 million households tuned in to "Love Is Blind," another Netflix original program.
Chief Executive Reed Hastings disclosed that the majority of Netflix original programming scheduled for release in 2020 - 2021 has already been filmed , meaning more than 200 projects are in postproduction and editing, that can be accomplished from a "stay-at-home" mandate. This means that Netflix may be one of the only broadcasters that will be releasing original content on 2021, an enormous competitive advantage for the company.
Hasting observed that such quarterly growth is an anomaly for the company and fully driven by stay at home orders. "We expect viewing to decline and membership growth to decelerate as home confinement ends" said Hastings, who added "we, too, are really unsure of what the future brings."