Netflix gains 15.8 million customers amid coronavirus lockdowns
Pre-Advanced Netflix has seen a surge in new sign-ups as audiences stayed in their homes to help fight coronavirus and binged on series such as Tiger King.
The world’s largest streaming service gained 15.8 million paying customers in the first three months of the year, bringing its global total to 182.9 million at the end of March.
The firm is among the few businesses to benefit from government orders imposed in March to keep people in isolation amid the coronavirus threat.
Netflix also issued a bullish forecast that it would add 7.5 million new customers for the current quarter, which ends in June.
In the quarter, Netflix true-crime documentary Tiger King about a colourful zookeeper became a cultural sensation.
It also released reality show Love is Blind and a new season of Spanish-language thriller Money Heist.
But the company predicted a weaker second half of the year if lockdown orders are lifted.
“We expect viewing to decline and membership growth to decelerate as home confinement ends,” Netflix said in a letter to shareholders.
Shares of Netflix rose 1.2 per cent to $439 (£357) in after-hours trading.
As streaming video has grown, the market has become more competitive with the debut of Walt Disney Co’s Disney+ and upcoming rivals.
This has pushed Netflix to look for growth overseas.
The company’s biggest expansion from January through March came from Europe, where it added 4.4 million new customers
Today's Vocabulary
1. binged (v)
to do something in a way that is extreme and not controlled
2. imposed (v)
to officially force a rule, tax, punishment, etc. to be obeyed or received
3. bullish (adj.)
giving your opinions in a powerful and confident way
4. confinement (n)
the situation in which a person or animal is kept somewhere, usually by force
5. heist (n)
a crime in which valuable things are taken illegally and often violently from a place or person
6. streaming (n)
the activity of listening to or watching sound or video directly from the internet
7. decelerate (v)
to happen or make something happen more slowly
QUESTIONS
- What did the article say the doubling of subscriptions was due to?
- What doubled at Netflix in the past three months?
- What do you know about Netflix?
- What company is Netflix now worth more than?
DISCUSSION
- Is Netflix the best streaming service?
- What would you do if there were no movies or TV?
- How important are companies like Netflix?
- Which are better – movies or TV shows?
- What questions would you like to ask Netflix’s boss?
