It is a box, which has further amplified in 2020 thanks to confinements around the world. Netflix ended the year with 203.7 million paying subscribers worldwide, despite increased competition and a recent price hike. The leader in paid video streaming announced on Tuesday it had garnered 37 million additional subscriptions over the whole of 2020, including 8.5 million in the fourth quarter, a sign that the platform continues to gain market share even if it is more at the same rate as last spring.
“We are very close to achieving a positive cash flow,” the group further announced in its earnings release. “We believe that we no longer need external investments to finance our day-to-day operations”. Result, the title of Netflix jumped more than 10% on Wall Street during electronic trading after the close of the stock market.
Twice as many subscribers in two years
In the fourth quarter of 2020, the California-based company posted net income of $ 542 million – $ 40 million lower than a year ago – on revenue of $ 6.6 billion, up $ 21. 5%.
In two years, Netflix has almost doubled its number of subscribers – from 111 million at the start of 2018 to nearly 204 million at the end of 2020 – and the average revenue per subscription has increased from $ 9.88 to $ 11.02, the company points out. .
In 2020, like many other tech giants, the platform has benefited greatly from travel restrictions imposed in various countries to fight the pandemic. But this also means that competition has increased, with Disney +, which has exceeded 85 million subscribers in one year, but also with all video content services, professional or not …
“It’s a great time to consume entertainment, with a lot of options, from classic television to video games and content produced by social media users on YouTube and TikTok,” notes Netflix. “We continue to work hard to increase our share of screen time against these major rivals.”
“The big winner of the streaming battles”
“Netflix is ending its best year and is expected to grow further in 2021, with major releases already planned,” commented Eric Haggstrom, analyst at eMarketer. “For now, he’s the big winner in streaming battles”.
The company also wants to prove that it does not depend on its historical markets: more than 80% of the additional subscriptions taken out in 2020 were taken outside North America. For the first quarter of 2021, it plans to gain 6 million new subscribers.