Answered: COVID-19 affected Netflix?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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How has COVID-19 affected Netflix?

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COVID-19 A

ffected Netflix:

Netflix reached a whopping 15.8 million paid subscribers in the first three months of 2020 amid the corona virus pandemic which has forced people to stay at home. The California-based company had expected 7.2 million subscribers but witnessed a more than double rise in paid subscribers.
The global total reached 182.9 million from January through March, Reuters reported.
The report stated that the audience has binged on shows like the Tiger King. It also came up with shows that gained popularity like Love is Blind and Money Heist.
The report also stated that Netflix has predicted a further increase of 7 million paid subscribers in the period of the pandemic which may go on till June.
The company's biggest expansion from January through March came from Europe, where it added 4.4 million new customers.
According to a report by AFP which cites earning figures, Netflix made a profit of $709 million, roughly Rs. 5,445 crores on revenue of $5.8 billion which is roughly Rs. 44,525 crores in the first three months of this year.
Eric Haggstrom, E-Marketer forecasting analyst said, "After record subscriber additions, Netflix is and will continue to be the media company least impacted by COVID-19. Their business is a near-perfect fit for a population that is suddenly housebound."

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