American media-services provider and production company, Netflix, has announced that it doubled its initially predicted 2020 quarterly growth, adding an additional 16 million users globally on its streaming platform.
The prediction was made, however, in January this year, prior to lockdowns being implemented around the world.
This announcement comes after YouTube and Netflix both had to reduce streaming quality in Europe to prevent the internet from crashing due to unprecedented levels of online streaming.
The additional 16 million users represent the biggest quarterly gain in the company’s 13-year history. In response to the quarterly report, Netflix’s shares have surged. However, they soon fell back, with some claiming that the swing could be attributed to the strengthening United States dollar – which relatively decreases the company’s foreign revenue, ultimately dampening gains from foreign markets that hold huge potential.
Heeding with caution, Reed Hastings, CEO of Netflix informed investors during a video call that the expected subscriber growth seems likely to taper off during the second half of the year, yet still expressing the confidence that video streaming will win more converts for at least the next five years.
Not the only business thriving
This also comes amid Netflix facing increased competition in the video-streaming industry, with the entry of Quibi, with what the media has labeled a “streaming war”. Other players include Hulu, Disney Plus and Warner Bros. upcoming streaming service HBO Max, which launches on May 27.
Netflix is not the only company deviating from the general depressed economic trend. TikTok, Amazon and Walmart have all embarked on hiring sprees, since their online popularity has surged since the lockdown.
Online dating platforms such as Bumble and Tinder have also witnessed unprecedented growth, with Tinder recording over three billion swipes in a single day on March 29 – the most in the company’s history.
Scoob! sent straight to HBO Max
Meanwhile, on Tuesday, Warner Bros. announced that the soon-to-be-released animated Scooby-Doo film “Scoob!” will skip theatres and be released straight onto the production company’s upcoming streaming service – HBO Max.
Other films and studios have opted to postpone top releases, with Warner Bros. also delaying its release schedule for other highly anticipated films such as “The Batman”.