Due to corona virus pandemic throughout the world, numerous businesses and services have been forced to shut down for an indefinite period. But for some it has brought quite a blessing. Particularly the services which are online based.
To prevent novel corona virus infection, hundreds of localities around the globe have been put under lockdown. Citizens there have no choice but to stay at home. During this time their internet usage have increased hugely. For many of them, apart from spending times on social medias, another major way to pass out times is watching favorite shows, films and series on online entertainment platforms.
Thus businesses of those entertainment platforms are gaining huge jump as on one hand old subscribers are enjoying more programs than before and on the other hand numerous newer members are joining everyday.
One of the largest online streaming platforms Netflix has got 16 million new subscribers in just first three months of this year, thanks to lockdown. The number is double comparing to last three months’ on 2019.
However the entire of the story is not quite satisfying for Netflix. The corona pandemic is weakening the economics of many countries day by day. And it will keep worsening in upcoming months, economic organizations predicting. As a result the value of currencies in many countries are declining. So the financial gain for Netflix are not happening proportionately. Vast majority of Netflix’s new subscribers are from outside United States.
Moreover Netflix is stating that they are struggling to present fresh items of entertainments to audience as shootings and everything else of productions are now in halt everywhere. The new films and series they currently have in their bucket will help them till atleast June. After that, they have to relay totally on old programs. It’s a concern for Netflix that how long they can satisfy these subscribers if newer contents cannot be created as soon as possible.
But keeping those headaches for future, Netflix is now enjoying their best time in recent years. The share price of the company has increased 30% this year. Due to heavy demand, to ease pressure from the internet service providers, Netflix has decided to reduce their video quality in Europe. They also have employed 2,000 additional stuffs to meet the increased demand.
After receiving 16 million new subscribers in the first quarter of this year, Netflix is now hoping to get another 7.5 million new members in the next three months. However Netflix itself has warned it’s share investors that whenever governments around the world will start easing the lockdown, the share price of their company may get down rapidly.
Among the 16 million new subscribers of Netflix, 7 million are from Europe, Middle East and Africa. 2.3 million have joined from United States and Canada. Netflix is currently having total 182 million subscribers worldwide.
Due to ongoing corona situation, Netflix’s revenue has increased to $5.76 billion, that’s more than 27% comparing to the same period of last year. And in the first quarter of 2020, Netflix’s net profit has reached to $709 million double than the $344 million of last year’s first quarter.