Netflix Adds 16M New Subscribers

Netflix Inc. ended the first quarter with nearly 16 million new subscribers as people around the globe stuck at home due to the coronavirus pandemic are increasingly turning to streaming services to entertain themselves.

The Wall Street Journal reports the 15.8 million net customer additions were more than double what the streaming giant had forecast—a breakneck pace of growth the company said was unlikely to continue. Netflix now has 182.9 million subscribers world-wide.

“Like other home entertainment services, we’re seeing temporarily higher viewing and increased membership growth,” Netflix said in its letter to shareholders, noting that much of that growth came in March when shelter-at-home orders began. “We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon.”

With the pandemic leading to the shutdown of movie theaters, professional sports leagues, concerts and other events, streaming services such as Netflix have emerged as one of the rare video-entertainment options still available.

Wall Street Journal graphic

Netflix said it was able to operate remotely “with minimal disruption in the short to medium term,” but it, too, faces tremendous challenges due to the coronavirus. Production on practically all movie and television content has been shut down for weeks, and there is no set date for the content factories to start churning again.

Netflix said the production shutdown will only have a modest impact on new content for the next three months. But if producers and actors remain on the sidelines, it could become problematic. Netflix is rushing to finish shows that are in final edits and is aggressively acquiring content from third-party suppliers.

Most of the company’s subscriber growth occurred outside of North America. Netflix said it added almost 7 million subscribers in the region including Europe and the Middle East, 2.9 million in Latin America and 3.6 million in Asia.

In the U.S. and Canada, where it faces more competition as other media companies launch their own streaming services, Netflix reported 2.3 million new paid subscribers, compared with a gain of 548,000 in the fourth quarter and 1.9 million in the first quarter a year ago.

Usage was boosted in the quarter by several popular original efforts, including the third season of the drama “Ozark” and the documentary series “Tiger King: Murder, Mayhem and Madness.” Netflix said “Tiger King” was sampled by 64 million member households. Its unscripted dating show, “Love is Blind,” also broke through with 30 million member households tuning into some or all of the series.