Netflix Picks up Record 16 Million Subscribers during Pandemic
While the coronavirus pandemic is pushing businesses all over the country to the brink of bankruptcy, Netflix is reporting major first-quarter increases in profits and subscribers.
The streaming network on Tuesday reported it picked up almost 16 million new subscribers in the first quarter, a new record for the company, pushing its revenue to $5.77 billion. The news caused Netflix stock to climb 10 percent at one point before settling at a 1 percent gain — or $1.57 per share — in after-hours trading, financial experts say.
What’s more is Netflix officials say they expect the upward trend to continue, predicting the acquisition of at least 7.5 additional subscribers in the second quarter. “We don’t use the words ‘guess’ and ‘guesswork’ lightly,” says CEO Reed Hastings. “We use them because it’s a bunch of us feeling the wind and it’s hard to say. But again, will Internet entertainment be more and more important over the next five years? Nothing’s changed in that.”