Netflix gained one other 37 million subscribers final yr, a 22% enhance from 2019. Its inventory fared even higher, rising by 67% final yr. The Los Gatos, California, firm now boasts a market worth of greater than $220 billion.
For all its success, Netflix nonetheless faces challenges within the coming years from bevy of deep-pocketed rivals, with maybe probably the most formidable posed by a extra skilled and even bigger leisure firm: Walt Disney Co.
After deciding to cease licensing its library to Netflix, Disney launched its personal video streaming service 14 months in the past. The service, Disney Plus, has proved much more in style than anybody imagined, accumulating almost 90 million subscribers in its first yr, emboldening the corporate’s administration to foretell that it’ll boast as many as 260 million subscribers sooner or later in 2024.
“It’s tremendous spectacular what Disney has executed,” Netflix co-CEO Reed Hastings stated in Tuesday video dialogue with buyers. “It will get us fired up about growing our membership and growing our content material manufacturing.”
To retain and entice subscribers, Netflix already had been spending a lot cash on authentic programming that the corporate normally finally ends up shoveling out additional cash than its video companies brings in from its subscribers, though it has remained worthwhile below the accounting requirements allowed within the leisure trade.