Amidst the Coronavirus lockdown, the popular content streaming platform Netflix managed to add 15 million subscribers. The expected number of subscribers was around 7.2 million but it is two times the expected number of users. Now, Netflix has a total userbase of about 183 million. To put it into perspective, it has marked a 22% year over year growth.
A majority of people are in their homes and due to the same reason, the average global Internet traffic has skyrocketed. Following this, popular social media platforms like Facebook, WhatsApp Instagram, and online streaming services like YouTube, Netflix, etc saw a sudden surge in the number of users. This is what resulted in Netflix bagging 15 million subscribers during the lockdown.
Netflix said, “Some of the lockdown growth will turn out to be pull-forward from the multi-year organic growth trend, resulting in slower growth after the lockdown is lifted country-by-country. Intuitively, the person who didn’t join Netflix during the entire confinement is not likely to join soon after the confinement.”
This growth might be temporary as the number might pull back after things settle down and the lockdown is revoked. People will be back to work and students to colleges, which will reduce the number and the company might see a sharp decline after the lockdown.
Netflix had already halted its content production work earlier due to the Coronavirus outbreak and this affects the schedule of new releases. Existing shows that were pre-recorded can be found on the platform.
The huge spike in the number of users on Netflix is definitely due to the lockdown and it will lower as soon as the lockdown is lifted. Last month, the company also formed a $100 million relief fund to help workers during this miserable situation.
Source: The Verge