A year ago, Netflix had just connected 160 million subscribers globally and was focusing more on international growth to fuel its business ambitions. Now that the number of subscribers has grown to over 40 million, the company has easily passed the 200 million subscriber mark, marking another milestone for a streaming giant that keeps growing.
Now Netflix has over 203 million subscribers worldwide, adding 8.5 million subscribers in the last quarter alone, making its position as the market’s biggest streamer even harder to overthrow in as competing services such as Disney +, Discovery +, Paramount +, Peacock and HBO Max are looking to create their own versatile streaming offerings to compete face to face.
In a note to shareholders as part of its quarterly results, Netflix, which has long ignored the competition, acknowledged for the first time how crowded the streaming entertainment space has become.
“Discovery recently launched its streaming service. Disney + is expanding into new countries and with more content, ”reads the letter from the shareholder. “ViacomCBS will unveil its plans for Paramount + in 2021. Combined with the launch of AppleTV +, WarnerMedia’s HBO Max and NBCUniversal’s Peacock streaming services, this means these companies all recognize that the future is streaming entertainment, a vision we have been working towards from the start. ”
This competition is perhaps easier to quell amid the streamer’s massive subscriber milestone, proving just how beneficial the pandemic-fueled consumer shift to streaming has been for Netflix. During the year 2020, the service – which found success with hits like Tiger King at the start of the Covid-19 pandemic and saw its subscribers count keep inflating like people stayed at home – added a record 37 million paid memberships and generated $ 2 billion in annual revenue, a 24% increase year over year.
“Our strategy is simple: If we can continue to improve Netflix every day to better delight our members, we can be their first choice for streaming entertainment,” the company said.
The speed at which Netflix’s subscriber base is growing is a remarkable rate: it was in April 2017, less than four years ago, when Netflix crossed the 100 million subscriber mark after allowing users to broadcast movies and TV shows in 2007.
Our strategy is simple: If we can keep making Netflix better every day to better delight our members, we can be their first choice for streaming entertainment.
Netflix letter to shareholders
Netflix’s 100 million subscriber milestone then helped them raise capital for an aggressive push into the global market which has only intensified. This strategy, which other streamers follow, is evident in the distribution of Netflix subscribers: nearly 62% of Netflix subscribers now come from markets outside the United States or Canada, according to figures released today, and 83% of net subscriber additions Company payrolls in 2020 were from outside the United States. Region of Canada.
In the United States and Canada, where it has the highest average revenue per member, the company added just 860,000 new subscribers in the fourth quarter.
Netflix increased its prices at the end of October to help pay for the growing amount of new programming on its service as viewers continue to watch in large quantities as the pandemic continues to disrupt daily life. The hope, the company said, is to help pay for a new wave of programming that will help support its members and allow it to continue to grow even more – starting with an effort to release at least one new original film. every week in 2021.
The company is also working on a feature that allows its members to immediately start watching a title recommended for them, instead of having to browse Netflix’s huge library. This feature will be rolled out in the first half of the year, the company said.