COVID-19 affected Netflix?
Chapter6: Target Markets: Segmentation And Evaluation
Section: Chapter Questions
Problem 1SC
Related questions
Question
How has COVID-19 affected Netflix?
Expert Solution
Step 1
COVID-19 A
ffected Netflix:
- Netflix reached a whopping 15.8 million paid subscribers in the first three months of 2020 amid the corona virus pandemic which has forced people to stay at home. The California-based company had expected 7.2 million subscribers but witnessed a more than double rise in paid subscribers.
- The global total reached 182.9 million from January through March, Reuters reported.
- The report stated that the audience has binged on shows like the Tiger King. It also came up with shows that gained popularity like Love is Blind and Money Heist.
- The report also stated that Netflix has predicted a further increase of 7 million paid subscribers in the period of the pandemic which may go on till June.
- The company's biggest expansion from January through March came from Europe, where it added 4.4 million new customers.
- According to a report by AFP which cites earning figures, Netflix made a profit of $709 million, roughly Rs. 5,445 crores on revenue of $5.8 billion which is roughly Rs. 44,525 crores in the first three months of this year.
- Eric Haggstrom, E-Marketer forecasting analyst said, "After record subscriber additions, Netflix is and will continue to be the media company least impacted by COVID-19. Their business is a near-perfect fit for a population that is suddenly housebound."
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.