Netflix ended the year 2020 with more than 200 million subscribers, a feat it has achieved due to users who have not left their homes due to the Corona-virus pandemic, and the growing demand for entertainment services online.
Netflix said, Tuesday, that it added more than 8.5 million subscribers in the fourth quarter of the year, a gain that exceeded its expectations for this period.
The company recorded what it said was a record 3.7 million subscribers in 2020, bringing it to more than 203.7 million users by the end of the year, according to The Wall Street Journal.
The company’s subscribers have nearly doubled since the third quarter of 2017, when it first surpassed 100 million users.
The epidemic imposed itself on the growth of Netflix, as users reduced a range of entertainment activities, from eating outside and holidays to visiting theaters and concert venues, in compliance with closure orders and reducing the risk of infection.
As many people spend more time at home, the increased demand for network services has jumped, leading to a record increase in the number of subscribers.
On the other hand, shares of “Netflix” rose by 11.3% in after-hours trading on Tuesday. Note that the stock has risen more than 48% in the past 12 months.
The live-stream giant’s strong performances recently included the showing of the lively historical drama “Bridgerton”, “The Queen’s Gambit”, a new season of “The Crown” and the film “Midnight Sky” by George Clooney.
As Corona continues to restrict film and television production around the world, Netflix revealed that it currently has more than 500 titles in post-production or ready to launch. Last week, the company announced a list of movies that will see a new release on its platform every week throughout 2021.
The largest part of the company’s growth was recorded in the first two quarters of 2020, as the Corona pandemic and efforts to stop its spread changed daily life around the world. Meanwhile, year-on-year subscriber earnings have declined in recent times, a drop the company said it had expected.
Netflix also said it believes it no longer needs to borrow to run its day-to-day operations. The company currently expects cash flow for 2021 to be at break-even, a development that differs from its previous forecast, which was minus $ 1 billion.
The company said it plans to maintain a total debt of between $ 10 billion and $ 15 billion and is also considering a share buyback program to return the money to shareholders. Note that the company previously reported that it repurchased the shares from 2007 to 2011.