- Lockdown led to an increase in Netflix subscriptions.
- Netflix stock dropped 11% to $489.28, erasing $25 billion from the company’s market capitalization.
- Disney+ is giving tough competition to Netflix.
COVID-19 accelerated the growth of Netflix
The subscription television leader Netflix gained added 15.8 million additional users as COVID-19 pushed people all over the world to sit at home. Most of the expansion occurred in Asia, where Netflix added 9.3 million new subscribers in 2020, a 65 percent improvement from the previous year 2019.
Pandemic become a double-edged sword for Netflix
Netflix also faces a problem because of the pandemic because it disrupted the production pipeline. Pandemic also led to a lighter content slate in the first half of 2021. As a result, there was a slower membership growth. The business forecasted weak subscriber growth in the second quarter, with an additional 1 million net streaming subscribers against the predicted 5 million. Netflix shares fell 11% to $489.28, wiping out $25 billion from the company’s market capitalization.
Netflix faces tough competition
Netflix is now facing growing competition from new subscription platforms that are hitting the industry. Disney+, a much newer subscription channel, currently has 100 million viewers, compared to 207.6 million for Netflix. In just five months, Disney Plus has amassed 50 million subscribers.
Netflix comeback with the new shows in 2021
Netflix will never stop. Netflix prefers to release original shows, movies, and films by the dozen, and 2021 would be no exception. A sizable number of films, as well as new and returning episodes, have already been scheduled for release in 2021, and even more, will eventually follow.
Following are the upcoming shows on Netflix
- Fatma (Turkish drama)
- Sexify (Polish comedy)
- Headspace Guide to Sleep (New docuseries)
- Things Heard and Seen (New movie)
- Yasuke (New anime)
- The Innocent (Spanish thriller)