It’s no secret that Netflix is having some excellent business because of the Coronavirus pandemic. I mean, everyone’s at home, what else do they possibly have to do? Just tune into the most famous streaming service in the world, sit back on the couch and chill. And it is giving Netflix some amazing financial benefits. However, the future still worries them.
Netflix had its best EVER quarter
It’s true, and people were expecting it too. Netflix was expecting around 7 million new followers this quarter. But, those estimates were from a time before the Coronavirus pandemic took over over the world. Instead, the streaming service recorded somewhere around 15.77 million new subscribers! Yes, that’s right. They blew away their own estimates by 100%! Now, their total number of subscribers is at 183 million. To put that into comparison, their most recent competitor Disney+ only has 50 million subscribers.
By the looks of it, business is booming, but then why are the people over at Netflix so concerned? At least, that’s what it seems by their recent letters to its shareholders. The letter said:
In our 20+ year history, we have never seen a future more uncertain or unsettling.
So, what is so unsettling for the streaming giants?
One word – Content
Streaming services might have a huge influx of customers, but those customers only subscribe to one thing only – content, movies, shows. As long as the content is flowing, customers will be happy. But as we all know, Hollywood has taken a massive hit because of the Coronavirus pandemic. And as a result, the shooting of several big Hollywood productions are halted. Sadly, Netflix is one the same boat as well. They do have enough content for 2020, but they’re very uncertain about what happens in the future when they don’t have new content to stream.
The content Chief Editor of the company, Ted Sarandos ensured analysts and shareholders that Netflix is safe for 2020:
We work really far out relative to the industry because we launch our shows all episodes at once.
This model forces Netflix to shoot most of its shows in advance. Moreover, Sarandos also said that most of the list of Netflix specials, which includes films, and shows, “are largely shot and are in postproduction“.
2020 is safe, but Disney will put a dent in Netflix too
2020 might be safe for the streaming giants, but 2021 will be tricky. Especially when they run out of content. Moreover, some old content will be coming off of Netflix too, especially Disney’s MCU and Star Wars films. And that will take a hit on the company too. That is the business model of Netflix after all to combat Disney, by creating a bulk of shows. But with the Coronavirus pandemic creeping up to its peak, all is uncertain for now. However, CEO Reed Hastings didn’t create any bad blood between Netflix and Disney. He was impressed by Disney+ and their performance, saying:
I’ve been so impressed with Disney+’s execution. My hat’s off to them.
But, I’m sure everyone is looking out for themselves now. Let’s hope the pandemic settles soon, and everyone can go on with their lives once and for all.