Netflix reported a towering increase in profit with 16 million subscribers at the streaming television service to slow the spread of Corona Virus during the lockdown.
The eMarketer Forecasting Analyst Eric Haggstrom said that: “the record makes the Netflix be and will be the media company least impacted by COVID-19. Netflix has made a remarkable profit of $709 million on revenue of $5.8 billion in just the first 3 months of this year 2020. According to the earnings figures, the subscriber’s number met with 15.7 million from the previous quarter to total that is about 183 million.
According to the latest perception, Netflix business is the perfect fit in the current situation of Lockdown in most of the world. The Coronavirus Pandemic has made strict rules in most of the countries of World, to overcome the outbreak of the virus. Among this terrible situation of lockdown, where everyone is stuck in the home. Netflix is providing a great source of entertainment, in the competitive streaming market.
Netflix Executive said that we are aware of having the service that is more meaningful to people that are staying at home, that we can operate remotely with a nominal interruption from short to medium term. Among other Entertainment services that are provided for home, Netflix seems to be the most desirable with higher viewing and subscribers rate.
The California based Company stated that the US alone has lost 22 million jobs since mid of the march. In the current situation long term effects of job losses due to COVID-19 on the revenue of Netflix remnants ambitious. In more discussion with investors the Netflix executive also stated that in their 20+ years of history, they have never seen this kind of future unsettlement and uncertainty.
As the Corona Virus Pandemic makes a huge increase in the subscriber of Netflix, that makes US Dollar a new boost with a gain of revenue. Haggstrom said that Netflix has provided a boom to move forward from the economic crises.
Another reason behind the significant increase of subscribers is the closures of Theaters, Cineplex, Restaurants and, Clubs. People who always ready to find entertainment seem to be housebound, which makes the condition suitable for Netflix.
No one can ask about the end of the Corona Virus Pandemic, so it is unclear how long the lockdown will remain. In the current situation, people are finding something to entertain themselves at home. Netflix is doing it great, providing great sources of entertainment. With the tremendous increase of Netflix subscribers, the market is going to be more competitive for other media companies.