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Netflix confirms two-fold rise in paid subscriptions in first quarter

Netflix confirms two-fold rise in paid subscriptions in first quarter
Netflix confirms two-fold rise in paid subscriptions in first quarter

Netflix Inc has recently reported a surge in the number of paid subscribers in the first quarter,  surpassing expectations. This was due to the lockdown imposed all across the world to contain the spread of coronavirus that has forced people to keep at home and entertain themselves by watching online shows like Tiger King.

Netflix has doubled up on its projections for new customers as several audiences who have been quarantined begin to binge on popular series like Tiger King. However, the company has expected a weaker second half of 2020 as the order to stay home may get lifted.

The largest streaming service in the world had garnered about 15.8 million customers from the months January to March, which brought its global base to 189.9 million. Netflix had predicted to add up nearly 7 million over the same period.

Netflix has already warned that it is anticipating a lower number of new subscribers from the month of July to December in comparison with the year prior. An executive stated that several people who could had joined the channel in the second half of the year had most likely already signed up.

The company is one of the few businesses that has benefitted from the orders of the governments that were imposed in March to urge people to maintain social distancing, to be able to curb the alarming spread of the infectious coronavirus. Netflix has gained about 11 percent while the S&P 500 Index has witnessed a plunge by 19% from the month of February.

Apparently, the streaming service has issued a bullish forecast stating that it will be adding about 7.5 million new customers in the ongoing quarter that will end by June. The company expressed that there has been no guarantee that the global economic recession, as well as the rising competition, will not hit Netflix in the second half of the year.

There has been little clarity coming from the firm regarding the future which will be probably hurting stocks in the short run.

 

Source Credit - https://www.channelnewsasia.com/news/business/netflix-doubles-expected-signups-but-warns-coronavirus-boost-may-fade-12665108