The huge demand for online video platform Netflix can be noticed during the house arrest of people. Earlier this year, most people in the world had to choose a life of confinement to prevent coronavirus infection. Once upon a time, office activities and school curriculum started online from home. Entertainment is also needed. So there is a huge demand for Netflix.
Netflix has been able to keep up with that demand? A recent report by BBC Online highlighted such an analysis. That being said, the coronavirus has changed this video platform in five ways.
1. The pace of consumer growth has slowed
They didn't do as much business as Netflix had hoped. At first they saw a 'boom' but later they could not keep up the pace of growth. According to the latest data, Netflix added just 2.2 million new subscribers in the three months from July to September; Although they were already aware of this. In July, they said, the number of customers will increase by 2.5 million. The company's share price fell 5 percent after the announcement. However, in 2020, a record number of subscribers have been added to Netflix by 2020. Its total subscriber base has exceeded 200 million.
‘Enola Homes’, ‘Project Power’ and ‘The Kissing Booth’ are quite popular. In the first four weeks of its release, the movie attracted 86 million, 75 million and 68 million subscribers.
2. The action movie 'Old Guard' is one of Netflix's hit movies
The movie, starring Charlize Theron, has been watched by about 68 million members of Netflix. The action movie was released on Netflix on July 10. The movie was at the top in terms of viewing for 4 weeks after its release. ‘Enola Homes’, ‘Project Power’ and ‘The Kissing Booth’ are quite popular. In the first four weeks of its release, the movie attracted 86 million, 75 million and 68 million subscribers. However, if a customer is stuck in a video for two minutes, Netflix considers it as a view. It is worth noting, however, that people are interested in Netflix's original image, which is one of the successes of this virus.
3. Doing business in markets outside the United States is complicated
Netflix's international subscribers have complicated their business. About half of the last quarter's customers came from the Asia-Pacific region. Japan and South Korea also saw an increase in customers. However, the lion's share of the company's revenue is still from US customers. So the main thing is to hold the home market. In particular, to survive with competitors like Disney and HBO.
Netflix recorded profits from July to September. They have made a profit of 69 crore dollars. The income has been 840 crore dollars. The company says it has made huge profits due to the temporary downturn in film-drama production around the world.
4. More content is needed now
Netflix runs with its content. Due to the lockdown this year, the number of movies and TV dramas has dropped dramatically. Now the challenge for Netflix is ​​to hold on to the huge number of subscribers that have been connected. Of course Netflix is ​​not showing this concern. They want to make more ‘good and careful’ progress on content. The company expects the number of Netflix productions to exceed that of the 2020 quarter next year next year.
5. Production is hardly increasing profits
Netflix recorded profits from July to September. They have made a profit of 69 crore dollars. The income has been 840 crore dollars. The company says it has made huge profits due to the temporary downturn in film-drama production around the world.