Netflix posts explosive growth during global coronavirus pandemic, but warns boom may not last

Streaming giant Netflix added a record 15.8 million paid subscribers in March, with billions of people stuck at home during an unprecedented health crisis

However, it expects the surge to come at the expense of growth in the months ahead

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With billions of people stuck at home, Netflix, the world’s largest paid online TV network, experienced an explosive jump in customers in March. Photo: Bloomberg

Published: 10:08am, 22 Apr 2020Updated: 10:07am, 22 Apr 2020

Netflix posted the strongest financial results in company history Tuesday, adding a record 15.8 million paid subscribers – almost double the figure forecast by Wall Street analysts. Yet rather than gloat, the company’s executives warned investors not to get too excited.

Netflix benefited in the first quarter from an unprecedented health crisis, the global coronavirus pandemic. With billions of people stuck at home, the world’s largest paid online TV network experienced an explosive jump in customers in March, with many binge-watching Tiger King and Love Is Blind to ride out the quarantine.

But there’s no telling how long the boom will last. Netflix expects the surge to come at the expense of growth in the months ahead.

“Our guess is subscribers will be light” in the third and fourth quarter, CEO Reed Hastings said Tuesday on a call with investors.

Netflix forecasts 7.5 million new subscribers in the second quarter – a great quarter under normal circumstances. But investors, who sent the stock to new highs this week, may have wanted more. Though they initially bid Netflix shares up as much as 12 per cent after the close Tuesday, the rally soon fizzled. The stock was little changed as of 5.38pm in New York.

“Like other home-entertainment services, we’re seeing temporarily higher viewing and increased membership growth,” the company said in a letter to investors. “We expect viewing to decline and membership growth to decelerate as home confinement ends.”

Netflix posts explosive growth during global coronavirus pandemic, but warns boom may not last

Streaming giant Netflix added a record 15.8 million paid subscribers in March, with billions of people stuck at home during an unprecedented health crisis However, it expects the surge to come at the expense of growth in the months ahead

Streaming giant Netflix added a record 15.8 million paid subscribers in March, with billions of people stuck at home during an unprecedented health crisis

However, it expects the surge to come at the expense of growth in the months ahead